n South African Journal of Economic and Management Sciences - Can listed property shares be a surrogate for direct property investment behaviour?
|Article Title||Can listed property shares be a surrogate for direct property investment behaviour?|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 University of Pretoria and 2 University of Pretoria|
|Publication Date||Jan 2012|
|Pages||72 - 93|
|Keyword(s)||Construction demand, G11, Macro-economic property variables, Property demand and Property values|
ISI Social Science
The listed property sector in South Africa has grown to a size which could be considered to be a good representation of the income producing property market in general. Stock market listed property investment funds offer the opportunity to compare indirect property investment to direct property investment, which could bridge the gap between irrational investment behaviour and intrinsic asset values. This study investigates the relationship between listed property share prices and the property values in listed property funds. The share prices are correlated with various factors, such as the accounting ratios of the companies, the financial statements of the companies and general economic variables. The outcome of the study is an explanation of the behaviour of listed property shares, and its relationship to the direct property market and the general economy. This would assist in the explanation of market behaviour and provides the opportunity to more accurately predict portfolio asset values, which might be used in the valuation of individual real estate assets.
Article metrics loading...