International Articles

The Impact of Housing and Financial Wealth on Household Consumption: Evidence from Hong Kong

Authors:
Raymond Y.C. Tse, K.F. Man, and L. Choy

Start Page: 429
End Page: 440
Volume: 15
Issue Number: 3
Year: 2007
Publication: Journal of Real Estate Literature

Abstract:This study introduces the development of real estate appraisal and investment securitization in Taiwan, and then explores the appropriate appraisal approaches and relative significant characteristics during the process of real estate securitization. Questionnaires were distributed to real estate appraisal experts, including certified appraisers and researchers in Taiwan. Results show that the income approach is the first priority for appraisal during the process of real estate securitization, followed by the sales comparison approach and then the cost approach. As for impact factors, location, tenants, growth prospects, and property markets are the four main criteria influencing capitalization rates on which most appraisal professionals will focus in Australia, U.S., Canada, U.K., and Taiwan. The findings may enable practitioners and researchers in the international appraisal field to establish uniform valuation standards, especially for real estate securitization.