International Real Estate: Asia's Potential from a Research Perspective

Abstract

International Real Estate: Asia's Potential from a Research Perspective considers real estate market analysis in the context of economic theory pertaining to market disequilibria, utilising data from major cities in Asia as case studies. This framework makes it possible to determine what defines an Asian real estate sector: What is being measured? How does it behave (in terms of price and non-price factors)? How it is structured? How effectively does it achieve sustainable total returns? And how does it manage real estate market uncertainty?Real estate market uncertainty originates from both the demand- and supply-side of the market. The market responds to structural macroeconomic and microeconomic factors that in turn are affected by related public policies. These elements interact to affect Asian real estate in unique ways since the Asian currency crisis of 1997. David Ho's analysis shows that while the details of real estate market analysis are different for the various Asian cities (and their real estate sectors) owing to their different stages of maturity, underlying principles nevertheless apply. He also looks at managing real estate market uncertainty at the portfolio level through the analytical techniques of real estate asset allocation, real estate value-at-risk (VaR), real option analysis and pricing.