Property Shares, Appraisals and the Stock Market: An International Perspective
Piet M. A. Eichholtz
University of Maastricht - Limburg Institute of Financial Economics (LIFE)
David J. Hartzell
University of North Carolina at Chapel Hill
J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 12 No. 2
A severe problem facing both real estate researchers and investors is the lack of reliable real estate returns data. Property shares, the shares of companies which invest in property and manage a portfolio of real estate, have been proposed as indicators of real estate performance. Property shares exist in many countries, are publicly traded, and their returns are not inherently biased. For three countries, we investigate the relationships property share returns exhibit with common stock and appraisal-based returns. Our results indicate that property shares are closely related to the stock markets on which they trade, thereby confirming previous findings for the United States.However, property share returns also predict appraisal-based indices.
JEL Classification: G15Accepted Paper Series
Date posted: May 26, 1998
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