Value Versus Growth International Real Estate Investment

37 Pages Posted: 26 Feb 2013

See all articles by Kwame Addae‐Dapaah

Kwame Addae‐Dapaah

affiliation not provided to SSRN

James R. Webb

Cleveland State University

David Kim Hin Ho

affiliation not provided to SSRN

Kim Hiang Liow

National University of Singapore (NUS) - Department of Real Estate

Date Written: Spring 2013

Abstract

We use office and retail properties return data for the United States and some Asia Pacific cities to ascertain the relative performance of value and growth investment strategies. The results reveal that value portfolios outperform growth portfolios. Furthermore, while the results show that risk varies over time, time‐varying risk analyses generally do not support the risk‐based explanation for the value premium. Similarly, conditional market regressions do not explain the value premium anomaly as all the alphas are positive and significant. Moreover, the results imply that naïve extrapolation of past performance could be a credible explanation for the value premium.

Suggested Citation

Addae‐Dapaah, Kwame and Webb, James R. and Kim Hin Ho, David and Liow, Kim Hiang, Value Versus Growth International Real Estate Investment (Spring 2013). Real Estate Economics, Vol. 41, Issue 1, pp. 65-101, 2013. Available at SSRN: https://ssrn.com/abstract=2224500 or http://dx.doi.org/10.1111/j.1540-6229.2012.00335.x

Kwame Addae‐Dapaah (Contact Author)

affiliation not provided to SSRN

No Address Available

James R. Webb

Cleveland State University ( email )

1860 E. 18th St., BU 327E
Cleveland, OH 44115
United States
216-687-4716 (Phone)
216-687-4716 (Fax)

David Kim Hin Ho

affiliation not provided to SSRN

No Address Available

Kim Hiang Liow

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore
65-8743420 (Phone)
65-7748684 (Fax)

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