Market analysis study of the value technology systems to home owners

Smart Technology involves the integration of a variety of home systems including lighting, climate control, security etc. to enhance the comfort, convenience and economy of the home for its users. It is currently unknown if home buyers believe that these systems add value to the home. This study used the market value of home sales and an attitudinal survey of home buyers, to determine the increased value of homes containing Smart Technology. The results demonstrated that a significant price premium was paid by for the incorporation of the technology into new homes. In addition, the research suggests that the use of this technology is not limited to high income earners or other demographic stereotypes. Instead it has broad market appeal and the potential to save energy for the community at large.

International housing market analysis based on housing commencements

Additions to the aggregate housing stock are a broad measure of the state of an economy and overall level of confidence in a particular region over a designated period. This is due to the direct and indirect effect (e.g. employment in the housing construction industry) upon on the local economy and is linked to the confidence of local households in the future direction of housing investment, the level of housing affordability by households as related to employment levels and the relationship between supply and demand in each region. Another consideration is the ability of the government to monitor and successfully intervene in the operation of the household market (e.g. mortgage interest rates) with the intent of restricting an over-supply situation which may take years to fully recover. The analysis in this section examines new housing commencements for Scotland, Australia, USA and Canada over an extended time period with the specific focus placed on the periods before, during and after the high profile global financial crisis in 2007-2008. The graph in Figure 1 was adapted from data sourced from The Scottish Government (2013) and covers the 15-year period between 1998 and 2012. With the exception of 1999 there were been relatively few years with substantial additions to the housing market. However, the effect of the GFC can clearly be observed post 2007 although by 2012 there was relatively change from the previous year.

The adverse effect of dummy auction bids on market value

The popularity of an auction as a means of selling residential real estate has increased markedly in recent years. The effectiveness of an auction program is heavily promoted by most real estate agents, claiming it to be the best means of attracting the best price from the highest bidder, It is based on the theory of gathering all buyers together at a publicised time, and then offering the property for sale to the open market.

In theory, the person most willing to buy the property will have the highest bid, supposedly agreeing at market value with the vendor (although above the vendor's reserve I. Unfortunately, the practice of dummy bidding has recently resurfaced and highlights serious flaws in the auction system, with hundreds of residential auctions conducted across Australia every weekend.

Clearly, it is in the vendor's best interests land the auctioneer's best interests, who is paid even more by the vendor if the price is higherl to achieve the highest offer from the last bidder. The tactic of dummy bids is designed to deceive genuine purchasers into a false sense of perception, where there appears to be more competition for the property than there actually exists.

This paper examines the auction process with the emphasis placed on the practice of dummy biding, It considers the broad implications for the definition of market value and also the overall residential market. Useful advice is also included for real estate valuers relying upon auction sale properties in their market analysis. As well as strongly supporting the auction concept, the authors suggest improvements to the overall auction process to ensure relevance to the definition of market value is maintained.

Volatility linkages and spillovers in stock and bond markets : some international evidence

This study investigates the transmission of market-wide volatility between the equity markets and bond markets of Japan, Germany, the U. K., and the U. S. To measure the volatility transmission, the BEKK- a decomposition approach to the multivariate GARCH (1,1) model, is used to examine the cross-market contemporaneous effect of information arrival. Our results suggest that within the domestic cross markets, the volatility transmission is undirectional from the stock market to the bond market. Evidence from international cross-market analysis is mixed, with strong evidence on volatility spillover among these international stock markets, but weak evidence between international stock and bond markets. In addition, there are significant bi-directional volatility transmissions between stock markets in Germany and the U. K., and between Germany and the U. S. The volatility transmissions among these markets suggest that the international diversification of bonds is not prevalent.

Volatility transmissions between stock and bond markets : evidence from Japan and the U.S.

This study attempts to investigate the transmission of market-wide volatility between the equity markets and bond markets of Japan and the U.S. To measure the volatility transmission, the BEKK (Baba, Engle, Kraft and Kroner, 1990) method, a decomposition approach of the multivariate GARCH (1,1) model, is used to examine the cross-market contemporaneous effect of information arrival. The time series analysis provides evidence to the long-run phenomena of causality in conditional variances of paired assets within the local and international markets. Within various pairings, some evidence of bi-directional volatility transmissions such as informational linkages have been observed. Our empirical results suggest that within the domestic cross markets, the volatility transmission is unidirectional from the stock market to the bond market. Evidence from international cross-market analysis is mixed, with strong evidence on volatility spillover among these international stock markets, but weak evidence between international stock and bond markets. In addition, there are significant directional volatility transmissions between DJI index and FTSE100 index, and between DJI index and DAX200 index. The volatility transmission between these two markets indicates that the international diversification of bonds is not prevalent.

Entrepreneurial training project in China : retraining laid-off workers

Despite the tremendous economic progress made by the Chinese economy, averaging a nine percent growth per year, one section of the community remains outside the economic boom. As state-owned enterprises (SOEs) restructure into more efficient organisations able to compete in the global economy, the plight of workers within these enterprises has become a pressing issue. No longer able to depend on a job for life, these workers present challenges for local governments. One initiative proposed by the International Labour Organisation called the Start Your Own Business (SYB) Program has been identified as a way to retrain laid-off workers, xiagang. By focussing on one city in China, this paper analyses some of the key issues associated with this program. Using anecdotal evidence from workers who have undergone the retraining, the paper has identified at least three areas of concern for workers participating in the SYB retraining program. Access to seed funding, the implementation of knowledge and skills into practice, and furthering support and guidance in market analysis remain issues for the continued success of this program.

The MORTN market orientation instrument - an empirical analysis

This paper focuses on Deshpande and Farley's (1998) MORTN market orientation instrument. Specifically, the paper investigates empirically the factor structure and reliability of the supposedly unidimensional instrument. When the MORTN instrument was tested utilising Australian organisations, a two-dimensional factor structure was found to fit the data more acceptably then the unidimensional structure proposed by Deshpande and Farley. These dimensions may be characterised as being Customer/Market Intelligence (Dimension One) and Customer Service (Dimension Two).

An empirical analysis of attendance factors relating to the female sports market

Although approximately seven million Australians attended sporting events in 2002, male spectators outnumbered female spectators by 25 percent (Australian Bureau of Statistics 2003). This study investigates the reasons for this difference by analysing a survey of 175 female sporting event attendees. The findings show that female attendance motivations are different for different sporting events, for example, football, horse racing and tennis. A number of other factors that were also found to influence attendance amongst the female market are explained and discussed and implications for sports venue managers are presented.

The information content of directors' trades: empirical analysis of the Australian market

We examine the trading activities of directors in shares of their own companies on the Australian Stock Exchange during the July-December 2005 period. We find that directors of small companies in particular earn abnormal return after both their 'Purchase' and as well as their 'Sale' trade. Directors of these companies have an uncanny ability to time the market by trading when mispricing is greatest, and are able to predict the future performance of their firms in short run. For directors of medium and large companies, we find evidence that 'Sale' trades are the ones which work as loss avoiders. Outsiders recognise to some extent that directors' trades are informative, however they are slow to incorporate the new information into prices, refuting much of the market efficiency literature.

Asymmetric recognition of good and bad news at Malaysian capital market : a pre and crisis analysis

The aim of this paper is to analyze the asymmetric recognition of good and bad news on reported earnings of Malaysian-listed firms. The study uses both descriptive and regression analyses to ascertain whether there is a contemporaneous relationship between news (good and bad) and reported earnings. The analysis is based on a sample of 150 firms listed on the Bursa Malaysia Index over a period of 10 years, from 1990 to 2000. Two regression models were adopted based on Basu (1997) and Giner and Rees (2001). The first model aims to capture asymmetric recognition of good and bad news into reported earnings while the latter model is developed to capture both asymmetric recognition of information shock and permanent earnings effect on contemporaneous earnings. The evidence from this study reported the steady increase in earnings per share till 1997. However, a drastic decline was observed for the period 1997 to 1999 because of Asian financial crisis. The findings from the regression model one suggested that the asymmetric recognition of good news was more prominent during the good time compare to bad time and vice versa. The findings from model two also suggested that autoregressive effect of permanent effect was very prominent both for crisis and non crisis periods.

Learning guide : conduct market research and analysis RUA AG4803 RM A

Study guide for the unit of competency RUA AG4803RM A

Direct versus search engine traffic : an innovative approach to demand analysis in the property market

Purpose – The application of “Google” econometrics (Geco) has evolved rapidly in recent years and can be applied in various fields of research. Based on accepted theories in existing economic literature, this paper seeks to contribute to the innovative use of research on Google search query data to provide a new innovative to property research.

Design/methodology/approach – In this study, existing data from Google Insights for Search (GI4S) is extended into a new potential source of consumer sentiment data based on visits to a commonly-used UK online real-estate agent platform (Rightmove.co.uk). In order to contribute to knowledge about the use of Geco's black box, namely the unknown sampling population and the specific search queries influencing the variables, the GI4S series are compared to direct web navigation.

Findings – The main finding from this study is that GI4S data produce immediate real-time results with a high level of reliability in explaining the future volume of transactions and house prices in comparison to the direct website data. Furthermore, the results reveal that the number of visits to Rightmove.co.uk is driven by GI4S data and vice versa, and indeed without a contemporaneous relationship.

Originality/value – This study contributes to the new emerging and innovative field of research involving search engine data. It also contributes to the knowledge base about the increasing use of online consumer data in economic research in property markets.