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| Past and Future Sources of Real Estate
Returns in Hong Kong Author: James R. Webb, K.W. Chau, and L.H. Li Start Page: 251 Abstract: Historical commercial
real estate returns are attributed to three fundamental factors: initial current yield,
growth in net operating income, and changes in going-in versus going-out capitalization
rates (i.e., pricing movements). Separating returns into these three factors appears to
provide more insightful information than the traditionally reported income and
appreciation returns. Using this three-factor model, historical real returns and inflation
pass-through rates are estimated for each major type of real estate (residential A/B/C,
residential D/E, office, retail, industrial). |
