Showing papers in "International Journal of Strategic Property Management in 2012"

Maintenance strategy selection using AHP and COPRAS under fuzzy environment

Abstract: Asset management, as a systematic process of operating, maintaining, and upgrading physical assets, is an important element of decision-making in heavy equipment management and operation. Maintenance strategy selection plays a significant role in mining design. However, the nature of maintenance strategy selection is a complex multi-criteria decision making (MCDM) problem including both tangible and intangible parameters which are often in conflicting with each other. As well as when decision makers are uncertain in determining and defining the ratings and the weights of alternatives and criteria respectively, fuzzy theory provides an appropriate tool to handle the existing uncertainties. In this paper, a new fuzzy MCDM method based on the concepts of COPRAS (COmplex PRoportional ASsessment) and AHP (Analytical Hierarchy Process) was proposed to evaluate the feasible maintenance strategy. The linguistic terms are employed to assess the ratings and weights. Fuzzy AHP is utilized to calculate the w...

Understanding impacts of time and cost related construction risks on operational performance of PPP projects

Abstract: The risk attributes in construction project is one of the widely published topics, yet there is no or little investigation whether or not risks associated with construction phase propagate over operational phase. As operation phase of the PPP projects is significantly long compared to the construction phase, understanding the impact of time and cost related construction risks over operation phase is quite important. In this research, risk attributes associated with the PPP procurement method have been identified across three dimensions, time, cost and operational performance. A questionnaire survey was used for collecting data in seven major PPP projects in Australia. Based on standard statistical methods and factor analysis, a number of key risk factors influencing time, cost and operational performance have been extracted. The research revealed that site conditions and design complexity is one of the most critical risk attribute influencing time performance in projects. Similarly, market dynamics is the most critical attribute influencing both construction cost and operational performance in PPP projects. Based on regression modeling, partner's dispute was found to be a good determinant of time and cost performance. Technical obsolescence has significant impacts on the operational performance of PPP projects. It was revealed that the design complexity, financial structure and government policy are the three main common factors affecting risks across time, cost and operational performance in PPP projects. It is anticipated that the findings will impact the construction firms for improving the front-end risk management capability for efficient positioning within the competitive business environment.

Industrialized housing in China: a coin with two sides

Abstract: China today is experiencing a time when housing is needed more than ever and one approach satisfying this need is by industrialization – a streamlined process aimed at generating profits and promoting energy efficiency in the housing sectors. Although large housing programs have been completed in China, few housing projects have been built in an industrialized manner. One contributing factor is that industrialization is not omnipotent and, just as a coin has two sides, not all the outcomes of industrialization are beneficial. In this paper, a preliminary assessment is made of these two sides – the benefits and hindrances of industrialized housing in China – by literature review and survey. Case studies are used to verify the questionnaire survey results and from which the advantages and disadvantages involved are compared. The findings indicate the need for formulating policies to encourage industrialized housing in China and for well-planned R&D themes to be implemented simultaneously with indus...

Greenhouse locating based on ANP-COPRAS-G methods – an empirical study based on Iran

Abstract: The selection of a location among alternative locations is a multi criteria decision-making problem including both quantitative and qualitative criteria. In this paper, we describe the research and development of hybrid MCDM methods for greenhouse locating. Selection of the most appropriate location for investor is an important problem which requires assessment and analysis of several factors. The paper clarifies the structure of important criteria in greenhouse locating. The six factors identified were: labor, government, environment, physical condition, regional economy and raw materials. In this research, analysis network process (ANP) is applied to find the relative weights among the criteria and to emphasize the interdependent relationships, thus increasing the accuracy of our results COPRAS-G method is applied to rank for five regions in Amol city, in Iran. This article can be a guideline for investors to select the best location for greenhouses.

A multiple criteria framework to evaluate bank branch potential attractiveness

Abstract: Remarkable progress has occurred over the years in the performance evaluation of bank branches. Even though financial measures are usually considered the most important in assessing branch viability, we posit that insufficient attention has been given to other factors that affect the branches’ potential profitability and attractiveness, such as: location features, trade area characteristics and facilities management. Based on the integrated use of cognitive maps and multiple criteria decision analysis, we propose a framework that adds value to the way that potential attractiveness criteria to assess bank branches are selected and to the way that the trade-offs among those criteria are obtained. This framework is the result of a process involving several directors from the five largest banks operating in Portugal, and follows a constructivist approach. Our findings suggest that the use of cognitive maps systematically identifies previously omitted criteria that may assess potential attractiveness....

What affects implementation of green buildings? : an empirical study in Hong Kong

Abstract: This paper examines the factors affecting the implementation of green buildings for the local construction industry. Questionnaire surveys and structural interviews were conducted to investigate the economical and social factors in the implementation of green buildings. From the survey results, the industry strongly believes that green building implementation is environment-friendly and can improve social values to the consumers. However, material costs, construction and transportation for green materials and green building features are more expensive than those for the conventional buildings. Four major factors affecting the existing limited implementation of green buildings were also discussed. Recommendations to improve the implementation of green buildings were also explored. This study can bring insights locally and around the world on how green buildings can be implemented to achieve environment-friendly, long-term cost saving and being recognized by the society and the consumers to reduce difficulties and burden encountered in the implementation.

A computerized risk evaluation model for public-private partnership (PPP) projects and its application

Abstract: PPP projects usually involve more risks than other traditional procurement models because of their complexity. This paper presents the third stage of a funded study, which aims to develop a practical and computerized risk evaluation model for PPP projects. In the first and second stages, a risk hierarchal structure composed of 17 weighted risk factors is developed to describe risk profiles of PPP projects. The weightings and membership functions for risk factors are established using the Delphi survey technique and Fuzzy Set Theory. The risk evaluation model is then developed using a fuzzy synthetic evaluation approach. In the third stage, an automated decision support tool based on the risk evaluation model is designed for PPP practitioners by using Visual Basic for Application (VBA). The computerized tool can not only assist PPP participants to assess a PPP project's overall risk level for auxiliary investment decision, but can also help practitioners to identify the most risky areas of a PPP p...

Monetary policy and housing sector dynamics in a large-scale Bayesian vector autoregressive model

Abstract: Our paper considers the channel whereby monetary policy, a federal funds rate shock, affects the dynamics of the US housing sector. The analysis uses impulse response functions obtained from a large-scale Bayesian vector autoregressive model that incorporates 143 monthly macroeconomic variables over the period of 1986:01 to 2003:12, including 21 variables relating to the housing sector at the national and four Census regions. We find at the national level that housing starts, housing permits, and housing sales fall in response to the tightening of monetary policy. Housing sales react more quickly and sharply than starts and permits and exhibit more duration. Housing prices show the weakest response to the monetary policy shock. At the regional level, we conclude that the housing sector in the south drives the national findings in the sense that the response patterns in the South most closely match the response patterns in the nation as a whole. The West's responses differs the most from the other...

Life cycle process model of a market-oriented and student centered higher education

Abstract: There is not a single definition/explanation about market-orientation education. Two opposite definitions/explanations of pure market-oriented education (Cato, 2010) and social-market-oriented education (Amaratunga, 2009) are provided in the paper. Integrated multiple criteria analysis at the micro-, meso- and macro-levels are needed to increase efficiency of the market-oriented higher education reforms. Market-oriented higher education reforms management involves numerous aspects that should be considered in addition to making educational, pedagogical, didactical, economic, political and legal/regulatory decisions. These must include social, culture, ethical, psychological, environmental, technological, technical, organizational and managerial aspects. This article presents a Life Cycle Process Model of a Market-Oriented and Student Centered Higher Education (developed during BELL-CURVE (Built Environment Lifelong Learning Challenging University Responses to Vocational Education) project's activ...

How efficient are real estate and construction companies in Iran's close economy?

Abstract: This paper empirically explores various efficiency aspects of real estate and construction companies in Iran in light of their remarkable growth in recent years. The technique used to measure the efficiency is DEA and the sample is taken from the construction and real estate companies in Iran. Results from our analysis reveal that most of the real estate and construction companies in Iran are generally technical, scale and mix efficient. However, they are less cost efficient due to increasing higher cost of production. The sensitivity analysis results also suggest that the real estate and construction companies are experiencing diseconomies of scale. As Iran is an underdeveloped market and is currently one of the most interesting frontier markets in the world, this research contributes substantially to investors and multinationals (who have growing desire to gain exposure in this market) by providing current information about the efficiencies of real estate and construction companies in Iran. In ...

A method of multi-attribute assessment using ideal alternative: choosing an apartment with optimal indoor environment

Abstract: An indoor environment of each building depends on a number of criteria, like temperature, humidity, noise, etc. Therefore, multi-attribute decision making (MADM) methods are used to assess alternatives and to choice the rational one. In this paper we suggest to add a concept of ideal alternative into assessment using MADM, since it allows both to determine the optimal solution and the deviation of each alternative (an indoor environment of a building) from the optimal values, e.g. ideal alternative. Therefore, a method of multi-attribute assessment using ideal alternative (MAAIA) is formulated in this paper. It is applied for the MOORA method to assess an indoor environment of apartments in block houses situated in Naujoji Vilnia, Vilnius, Lithuania. Obtained results of the assessment show that the proposed method is useful for decision support and assessment of alternatives.

Quantitative decision making in land banking: a Monte Carlo simulation for China's real estate developers

Abstract: The real estate industry is one of the fast growing industries in many developing countries such as China and India. The Chinese real estate industry has gone through many reforms from offering housing as part of its social welfare system, to the current capitalist model based on demand and supply. Due to these reforms and the shortage of lands for development in China's urban cities, many Chinese property firms have resorted to land banking in order to secure land property for future developments. However, in China, land speculation is considered illegal, while failure to purchase the suitable land for future developments will hinder the real estate developers’ future business and growth. The purpose of this paper is to develop a decision making model for property developments in their land banking decisions and strategies. The paper employed mathematical modeling and Monte Carlo simulation to examine our decision model, and further validated our results by conducting the simulation by using Chi...

Developing a concession pricing model for PPP highway projects

Abstract: The concession pricing is one of the most important issues during the negotiation period of PPP contracts. Pricing should vary in accordance with risks assumed by the private sector and embody equitable risk sharing between the government and the private sector to lower the minimum feasible concession price and ensure effective risk management. In this study, a general concession pricing model is developed through cost-benefit analysis from the perspective of the private sector. The model integrates project risk variables, price parameters, and other financial elements into a concession pricing formula based on cash flow table. Meanwhile, to cope with the occurrence of unforeseeable losses triggered by risk factors, such as interest rate fluctuation, inflation, traffic volume change, etc., a price adjustment mechanism is established to adjust the initial price and ensure the project's financial viability. The concession pricing model and adjustment mechanism allow the government and the private s...

Liquidity of European real estate equities: REITs and REOCs

Abstract: Listed real estate companies can be divided into two categories: real estate operating companies (REOCs) and real estate investment trusts (REITs). REOCs have been around for quite a while, whereas REITs are a somewhat new phenomenon in Europe, the main differences pertaining to permissible activities and taxation. This paper studies the relative differences of REOCs and REITs in terms of liquidity: Also asset returns, volatility and correlation to other equities are assessed. The liquidity tests performed reveal REITs to be significantly more liquid than REOCs, potentially due to restrictions regarding REIT ownership structure. Ceteris paribus, superior REIT liquidity implies REITs constitute a preferred investment vehicle.

Are the global real estate markets contagious

Abstract: The aim of this paper is to investigate the contagion across real estate markets of four countries: Hong Kong, China, US and UK, during the financial tsunami in 2008 We use the Forbes-Rigobon test, the coskewness test and the cokurtosis test We propose a new cokurtosis test constructed by extending the method of constructing the coskewness test to further higher order moments It can show additional channels of contagion that other tests fail to show, and hence can provide more information on the direction of contagion, and reflect a more complete picture of the contagion pattern The coskewness and cokurtosis tests show that contagion exists between the four countries, and the contagion effect is stronger between Hong Kong and China, and between US and UK This provides clues for investors on how to diversify their investment to reduce their risk This paper bridges the gap that previous works on contagion across real estate markets give mixed results, and gives a first insight into the

End in sight? On the (un)sustainability of property development in the Budapest region

Abstract: Sustainable development is defined in environmental, social and economic terms. In the post-socialist countries the sustainability of urban property developments has experienced various destinies amid changing institutional circumstances. Since the regime changes of 1990 the tendency of the land use and real estate economy in Hungary has been an extreme variant of neoliberal, opportunistic and large-scale developments together with project planning. As a result of this, urban regeneration in metropolitan Budapest is almost exclusively based on private investment, with the possible exception of ‘mega-projects’ where government has an interest in securing the provision of infrastructure. In this contribution, first the proposition of flexible and context dependent government intervention in the property development is outlined. After that a description of urban regeneration and other property development in the Budapest region is provided. A brief review of comparable post-socialist cities is also ...

Multiple criteria decision support system for the assessment of energy generation technologies considering the dimension of values

Abstract: Comprehension of the effect of energy generation technologies on the natural environment, human health and safety leads to a new and responsible approach to the choice and development of technologies. When it comes to preparing energy growth scenarios and handling issues related to the choice and assessment of technologies, environmental studies must be in a particular spotlight. One way to make quantitative and qualitative assessment of the effect of technologies on the environment is through a thorough integrated analysis, which, in addition to economic and technical solutions, also considers other aspects of concern to the public. A changed environment demands for systems of criteria which help consider its changes, the attitudes of the general public, public sentiments toward the effect of technologies, public values and community involvement in the process of important decision-making. The article examines how the dimension of values affects the analysis of the impact of environmental factor...

Investigating influences on real estate agents' ethical values: The case of real estate agents in Nigeria

Abstract: Utilizing data from questionnaire administration on a random sample of estate surveyors and valuers in real estate agency practice, this study examines the relationship between real estate agents’ demographic characteristics and their ethical values in Nigeria. Using mean rating on a 5-point Likert scale, among other findings, the study revealed that of all the ethical values examined, real estate agents approve of self-interest but disapprove of fraud in the discharge of their duties. However, the greatest evidence of disapproval of fraudulent practices is amongst female real estate agents and agents with higher levels of academic qualification. On the other hand, the study found no statistically significant relationship between the ethical values and age, year of experience and professional qualification of the respondents.

Relationship between residential property price index and macroeconomic indicators in Dubai housing market

Abstract: The main purpose of this study is to investigate whether there is a long-run relationship between macroeconomic indicators and property price index in Dubai. This paper uses the monthly data for the eight year period from January 2003 to December 2010. In order to identify long term equilibrium between property price index and macroeconomic indicators, cointegration analyses are utilized for the study. The results of the empirical analyses show that there is a long term positive equilibrium relationship not only between RE IDIN.com Dubai Residential Property Price Index (DRPPI) and gold prices; but also between DRPPI and volume of total direct foreign trade. On the other hand, there is a negative long-run relationship between DRPPI and the number of completed residential units. In addition, there is a significant positive relation between DRPPI and the first lag of DRPPI and also the first lag of error term. Our paper is the first academic study that identifies this relationship in Dubai.

Office quality classification theoretical and empirical issues

Abstract: Office quality classification literature recognises identification of office classes through division of office market rent distribution into intervals but failed to provide sound theoretical framework and comprehensive empirical approach to this method. This paper theorised that as office rental levels are a function of office quality; high quality office classes should have their mean rents greater than average market rent and mean rents of low quality classes. Also that heterogeneous nature of property coupled with lack of perfect information to market participants could result into differential evaluation of rent and quality of the same property by different market participants. The behaviour of participants normally reflects in distribution of market rent by depicting natural breaks in the distribution that could be captured by univariate data exploration. Frequency and histograms of rent distributions that were assumed to depict the behaviour of market participants were used to divide rent ...

Analytical assessment and comparison of facilities management services for residential estates

Abstract: Populous places are particularly in need of high-rise residential buildings, which are increasingly built as estates. The facilities in these estates entail proper management in order to serve the numerous residents there. Aimed at evaluating the facilities management (FM) services for three major kinds of residential estates (‘public’, ‘semi-public’ and ‘private’), a study was conducted based on a performance-importance-cost (PIC) evaluation model. The end-users’ perceived importance and performance levels and the cost data of the FM services for a public estate, a semi-public estate and a private estate were analyzed using the analytical hierarchy process (AHP), analysis of variance (ANOVA) and Fisher's least significant difference (LSD) procedure. The importance and performance levels of the services and their differences between the estates were revealed. The highest service performance and cost levels were found with the private estate, followed by the semi-public estate and the public estate, while the orders of their cost-effectiveness reversed. Rather than assessing merely the cost or performance of services, using the approach of this study to examine their cost-effectiveness can enable more holistic evaluations towards strategic property management.

Shiryaev-Zhou index - a noble approach to benchmarking and analysis of real estate stocks

Abstract: Real estate markets and real estate stocks are interrelated and are important not only to the investors, but also to the academics. Real estate stocks are, in a sense, good measures of performance of the physical real estate market. The objective of this paper is to provide a preliminary study on gauging the performances of real estate stocks in Hong Kong using the Shiryaev-Zhou index. Evidence shows that the Shiryaev-Zhou index can gauge a real estate stock's performance, good or bad, according to the sign of the Shiryaev-Zhou index. Thus a trading strategy can be formulated as follows: buy a stock if its Shiryaev-Zhou index changes from negative to positive, then hold it until its Shiryaev-Zhou index turns negative, when it is time to sell the stock. We examine the Shiryaev-Zhou indices of the real estate stocks in Hong Kong, and from this we deduce the latest best selling dates of the stocks during the period of our study. The Shiryaev-Zhou index could be an indicator of whether the market is ...

Critical reflections on the concept of maintenance

Abstract: The purpose of the paper is to critically evaluate the conceptual distinction between investment and maintenance. The study starts from a number of definitions in the literature and discusses these ...

The impact of pricing strategies on time-on-market under various economic conditions

Abstract: This study examines how price adjustments in a flat's marketing phase, along with various housing attributes, influence its time-on-market (TOM). A Cox survival model is used for the analysis of two separate periods, one of economic downturns (2003) and one of economic recovery (2004–2006), in Hong Kong. Factors such as price adjustments, sale price, numerous housing attributes, general property price trend, and changes in unemployment rate have significant impacts on TOM, with their respective impacts changing over time. Specifically, the effectiveness of raising list prices before transactions, in optimizing sellers’ returns and TOM, depends on economic conditions as well as on the market expectations regarding future property prices. Directions on future studies are then discussed.

Public demand for eco-efficient concepts in urban development

Abstract: Global warming has brought new challenges to urban development worldwide. Built environment and cities are estimated to cause some 40-70% of the environmental impacts. This questions our current urban development practises and challenges us to find new solutions to manage the issues. The purpose of this study is to identify feasible eco-efficient concepts that can be implemented in the urban development process. These concepts are identified with a constructive research method, where potential concepts are originally identified from literature and further enhanced with thematic expert interviews, and finally, the suggested concepts are tested with a questionnaire and presented in an integrated framework for the eco-efficient concepts to better understand the requirements and opportunities in public urban development. The results showed that the urban development concepts that were most appealing to public stake holders were; an integrated design process, eco-efficient traffic and transportation s...