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Over the last decade, the emergence and significant growth of home-sharing platforms, such as Airbnb, has coincided with rising housing unaffordability in many global cities. It is in this context that we look to empirically assess the impact of Airbnb on housing prices in Sydney—one of the least affordable cities in the world. Employing a hedonic property valuation model, our results indicate that Airbnb’s overall effect is positive. A 1% increase in Airbnb density is associated with approximately a 2% increase in property sales price. However, recognizing that Airbnb’s effect is geographically uneven and given the fragmented nature of Sydney’s housing market, we also employ a GWR to account for the spatial variation in Airbnb activity. The findings confirm that Airbnb’s influence on housing prices is varied across the city. Sydney’s northern beaches and parts of western Sydney experience a statistically significant value uplift attributable to Airbnb activity. However, traditional tourist locations focused around Sydney’s CBD and the eastern suburbs experience insignificant or negative property price impacts. The results highlight the need for policymakers to consider local Airbnb and housing market contexts when deciding the appropriate level and design of Airbnb regulation.

Chinese outward investment in real estate (FDIRE) has increased tremendously in recent years. However, it has attracted little attention in the literature. This study aims to assess the asymmetric impact of institutional quality on Chinese outward FDIRE using an extended gravity model with a real estate institutional factor. Using the unique dataset of Chinese outward real estate investment collected from Real Capital Analytics, we identify the main determinants of China’s outward FDIRE. The results show that the established gravity model and real estate institutional factor together explain China’s outward FDIRE. Specifically, market size and cultural proximity have a positive influence on the FDIRE outflows from China. In addition, institutional factor, namely real estate transparency, has an acute impact on China’s outward FDIRE, whilst it is conditional on the market size of and the economic growth speed of a country, highlighting an asymmetric effect of institutional quality on Chinese outward FDIRE. The implications of the findings have also been discussed.

This study examines the price discovery function and volatility spillovers in australian real estate investment trust (A-REIT) index futures and also investigates the effects of the global fi- nancial crisis (gfc) on these two features. as opposed to the general understanding of the relationship between the cash and the futures markets, the current study finds that the A-REIT cash market led the a-reIt futures market in price discovery and volatility transmission processes before the gfc. However, during the GFC, the two markets interacted bilaterally in terms of information flow, i.e., in- formation flowed in both directions. Furthermore, after the GFC, the futures market followed the cash market again, but less closely. These findings have broad implications for investors in property assets.

This study examines the inflation-hedging properties of European real estate stocks in developed and emerging markets over 1990 to 2011. The Fama and Schwert model and a dynamic ordinary least squares (DOLS) regression were employed to study the inflation-hedging characteristics of European real estate stocks over the short run and long run. The empirical results show little inflationhedging ability of European real estate stocks over the short run. Over the long run, developed real estate stocks provide a positive inflation hedge against expected inflation, while no similar evidence is found in the emerging markets. The findings suggest that the inflation-hedging properties of real estate stocks are related to the institutional involvement in the real estate stock markets. The finding could have profound implications to institutional investors.

In this study, we examine the volatility pattern of Australian housing prices over an extended time frame. A component-generalized autoregressive conditional heteroscedasticity (C-GARCH) model was utilized to decompose the conditional volatility of housing prices into a "permanent" component and a "transitory" component. The results demonstrate that the shock impact on the short-run component (transitory) is much larger than the long-run component (permanent), whereas the persistence of transitory shocks is much less than permanent shocks. Moreover, both permanent and transitory volatility components have different determinants. We provide important new insights into the volatility pattern of housing prices that should enable more informed investment and government policy decision-making. [ABSTRACT FROM AUTHOR]

This study aims to examine the volatility spillover in Australian REIT futures over the study period of 2004-2008. An Exponential-Generalized Autoregressive Conditional Heteroscedasticity (EGARCH) model is employed to analyze the volatility series of REIT futures. The results show that REIT futures are heavily influenced by REITs and stocks, suggesting that the news originated from these markets will affect REITs futures. The results also illustrates that the equity market is more influential than REITs in affecting the volatility of REIT futures. It is also shown that REIT futures are more sensitive to negative news than positive news. These findings have provided additional insights into the volatility patterns of property futures. [ABSTRACT FROM PUBLISHER]

Purpose - This paper aims to identify and examine the determinants of downside systematic risk in Australian listed property trusts (LPTs). Design/methodology/approach - Capital asset pricing model (CAPM) and lower partial moment-CAPM (LPM-CAPM) are employed to compute both systematic risk and downside systematic risk. The methodology of Patel and Olsen and Chaudhry et al. is adopted to examine the determinants of systematic risk and downside systematic risk. Findings - The results confirm that systematic risk and downside systematic risk can be individually identified. There is little evidence to support the existence of linkages between systematic risk in Australian LPTs and financial/management structure determinants. On the other hand, downside systematic risk is directly related to the leverage/management structure of a LPT. The results are also robust after controlling for the LPTs' investment characteristics and varying target rates of return. Practical implications - Investors and real estate analysts should conscious with the higher returns from high leverage and internally managed LPTs. Although there is no evidence that these higher returns are related to higher systematic risk, there could be the compensation for higher downside systematic risk. Originality/value - This study provides invaluable insights into the management of real estate risk in Australian LPTs with implications for REITs in other countries. Unlike previous studies of systematic risk in REITs or LPTs, this is the first study to assess downside systematic risk and explore the determinants of downside systematic risk in LPTs. [ABSTRACT FROM AUTHOR]

This study examines the importance of downside beta when seeking to explain variations in listed property trust (LPT) returns in Australia between 1993 and 2005. The results reveal that downside beta outperforms conventional beta and provides higher explanatory power to the cross-sectional LPT return variations. The results also indicate that investors only require a premium for downside risk. However, the explanatory power of downside beta has diminished once the co-kurtosis of LPTs is controlled. Interestingly, the results also reveal that by itself downside beta is unable to fully explain returns in line with strong evidence for momentum and book-to-market ratio. The findings provide additional insights for investors and real estate analysts into the pricing of LPTs. [ABSTRACT FROM PUBLISHER]

The rapid advancement of technology has revolutionised how we live and work, posing challenges and opportunities for various professions, including the property and construction workforce. The COVID-19 pandemic has further accelerated the pace of change. Therefore, in this study, we examined the future property workforce and the required skills for Property Industry 4.0 by conducting semi-structured interviews with property leaders. The findings suggest that digitisation and automation are reshaping the property workforce, including those working in development and construction, necessitating efforts to bridge the gap between graduates’ technology proficiency and practical application. Moreover, calls for proactive regulation of artificial intelligence (AI) use in the property sector highlight the need for regulator and professional body involvement. This study also shows the challenges and opportunities for property professionals with an increased focus on environmental, social, and governance (ESG) matters and the challenges of balancing global expansion with local adaptability due to globalisation. Furthermore, this work highlights a concerning decline in communication skills among graduates, which is partly attributed to the pandemic. Collaborative efforts between universities and industry are essential to cultivate these vital skills among future property professionals. The implications of this study are also discussed.

This study examines the impact of COVID-19 sentiment on office building rents and vacancy rates in China with a COVID-19 sentiment index constructed based on Baidu search queries on COVID-19-related keywords. We analyzed the data of office buildings and economic data from 2013 Q3 to 2022 Q2 in seven major Chinese cities with a two-stage Error Correction Model framework. We found that a heightened level of COVID-19 sentiment significantly and adversely affects the Chinese office buildings market. Specifically, office building rents decrease more than 8% if a city is exposed to an increase of one unit of COVID-19 sentiment for an entire quarter. The interaction terms model further reveals that the COVID-19 sentiment has a more substantial impact on office building rents where office vacancy is higher, reflecting an asymmetric effect. The findings here support the fear sentiment hypothesis. The findings suggest that a heightened level of investors’ COVID-19 sentiment resulted in a deterioration of office rents, reinforcing the role of investors’ sentiment in the pricing of office buildings. The findings suggest that investors should consider investor sentiment, particularly COVID-19 sentiment, in their decision-making.

Cities often show residential income segregation, and the price of housing is generally related to employment accessibility, but how do these factors intersect? We analyse Greater Sydney, Australia, a metropolitan area of 5 million people. Sydney is found to have reasonably even employment accessibility by car, reflecting the increasingly polycentric nature of the modern city; however, it also shows considerable income segregation and variance in property prices between different parts of the city. Entropy is used to examine diversity and mixing of different income groups. Finally, hedonic price models using ordinary-least squares and geographically-weighted regression techniques show the differing effects of employment accessibility on house prices in different parts of the city. The results show that accessibility has small to negative effects on prices in the most valuable areas, suggesting that other effects such as recreational access and employment type/quality may be more important determinants of house prices in these areas.

Extensive studies have examined the financial performance of green buildings in recent years. The results have frequently observed that the premium of green buildings is time-varying and dependent on the study period and markets being examined. Further, virtually no dedicated study has been devoted to examine the role of mandatory building energy rating disclosure policies on green building price premium. This raises the question of whether the mandatory energy rating disclosure policies would have an influence on the financial performance of green buildings. This study assesses the premium of green buildings by considering the role of mandatory energy efficiency of commercial building disclosure program (CBDP) using the MCSI/IPD NABERS data over 2005–2020. The results of the study showed that, in Australia, buildings with NABERS rating of 4 stars and above delivered a higher total return compared with buildings with lower NABERS ratings. This also supports the Freeman’s (1984) social impact hypothesis in which favorable social performance will ultimately lead to favorable financial performance. In addition, our empirical modelling results also demonstrated the premium of green buildings is stronger since the launch of CBDP, reflecting the importance of mandatory building efficiency disclosure. The policy implications of our studies have also been discussed as buildings play a crucial role in achieving the United Nations Sustainable Development Goals (SDGs), particularly net-zero carbon emissions.

Most countries have developed green building rating tools that are based on social, environmental, and economic dimensions. Pakistan followed a similar approach and has developed a rating tool known as Sustainability in Energy and Environmental Development (SEED). However, SEED is built on developed western countries’ rating tool standards which do not address Pakistan’s unique local context, especially from the cultural and governmental perspectives. This research aims to fill this research gap by developing a holistic framework of building rating tools that incorporates cultural and governmental dimensions. Based on an extensive literature review, a hypothetical framework, incorporating Pakistan’s unique local contexts and adding cultural and governmental dimensions to the widely adopted social, environmental, and economic dimensions of sustainability, was proposed in this paper. This framework was further validated by in-depth interviews with multiple stakeholders in Pakistan. A qualitative analysis of the interview results was carried out, and the final framework was proposed with key indicators, reflecting all five dimensions of sustainability. The verified sustainability framework can be used to improve or develop green building rating tools for Pakistan, and it can also inform other developing countries’ rating tool development.

Air pollution has received increasing attention in recent years, particularly in China, due to the rapid industrialisation that has wrought intense levels of air pollution. A number of studies, therefore, have been devoted to quantifying the impacts of air pollution on property value in China. However, the empirical results are somewhat mixed. This naturally raises questions of whether there is a significant relationship between air quality and housing prices and the plausible reasons for the mixed results in previous studies. This study aims to fill this gap by explaining the variations in the findings by a meta-regression analysis. To control for heterogeneity, a weighted least square model was used to explore the factors influencing the magnitude and significance of the air quality effect based on empirical estimates from 117 observations. This study confirms that air quality does have a discernible impact on housing prices beyond the publication bias. Besides, the types of air quality indicator and the air data source do significantly influence estimates through affecting both the magnitude of the elasticity and the partial correlation coefficient (PCC). Further, the selections of control variables and estimation approaches also have significant impacts on estimates. This study also finds that published papers tend to be biased towards more economically significant estimates. The implications of the findings have also been discussed.