Eres : Digital Library : Works

Paper eres2010_225:
THE INTEREST RATE SPREAD AND REAL ESTATE RETURNS ---- EVIDENCE FROM HONG KONG

id eres2010_225
authors Xu, Yishuang; Yiu, Chung Yim, Yiu
year 2010
title THE INTEREST RATE SPREAD AND REAL ESTATE RETURNS ---- EVIDENCE FROM HONG KONG
source 17th Annual European Real Estate Society Conference in Milan, Italy
summary As the capitalization rates are tightly related to the required rates of return, there are a number of dynamics driving capital markets can help to explain the observed cap rates over time. Anyway, there are few researches discussing about why and how real estate cap rates and capital market interact. This paper employs a model to explore why the cash flow of real estate market is influenced by the changes of capital market. Furthermore, we employ data from Hong Kong real estate and capital markets to investigate how cap rates are affected by the capital market dynamics. The findings reveal a moderate relation between cap rates and term-spread of interest rate, as well as evidence of influence of the capital flowing from foreign markets to domestic market.
keywords capitalization rate, cash flow, interest rate, foreign investment, expected rental growth
series ERES:conference
email sherryxu@hkusua.hku.hk
content file.ppt (971,264 bytes)
discussion No discussions. Post discussion ...
ratings
session doctoral
last changed 2010/07/16 14:16
HOMELOGIN (you are user _anon_680273 from group guest) Powered by SciX Open Publishing Services 1.002