Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/222580
Title: VALUE INVESTING : A REAL ESTATE PERSPECTIVE
Authors: TEOW YUN WEI SERAPHINA
Keywords: Real Estate
Issue Date: 29-Sep-2009
Citation: TEOW YUN WEI SERAPHINA (2009-09-29T06:46:30Z). VALUE INVESTING : A REAL ESTATE PERSPECTIVE. ScholarBank@NUS Repository.
Abstract: Value investing has been superior in the equity market. When applied to real estate, value premium proves to be superior to its growth counterpart. Shanghai historical residential properties perform better than its growth counterparts with consistent value spread and higher median values for quarter, 3, 5, and 7 years investment horizons. The value premium of the Shanghai residential properties is more obvious with longer investment time frame, and they are at 11.47% and 16.87%. Explanations for value premium have been argued to be risk and naïve extrapolation of past performance. Results of this study show that both explanations need further scrutiny. Risk is not an explanation for the value premium observed in the Shanghai residential properties. Market conditions were not severe when value properties underperformed growth properties. Furthermore, standard deviations of the portfolios are not consistent to show that risk could be an explanation for the premium. Likewise, naïve extrapolation of past performance cannot also be concluded to be an explanation for value premium. Even though value properties experience higher rental growth rate after portfolio formation, growth properties experienced an even greater increase.
URI: https://scholarbank.nus.edu.sg/handle/10635/222580
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Teow Yun Wei Seraphina 2008-2009.pdf911.84 kBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

15
checked on Jan 26, 2023

Download(s)

5
checked on Jan 26, 2023

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.