International Real Estate

'an important and very valuable contribution to the understanding of the pitfalls and the functioning of foreign real estate markets. International Real Estate - An Institutional Approach is truly inspiring. It is written in a clear and understandable manner and can, without doubt, serve most participants of international real estate markets as a guide or 'handbook' for carrying out or advising on real estate investments in foreign market environments. Recommended to investors, corporate real estate and funds managers or project developers as well as undergraduate and postgraduate students. ' Building Research & Information 2005 33(3) This book is a wonderful contribution to greater knowledge and I look forward to making much use of it. It may hold the promise of fewer acts of self-destruction in our industry but it is also a fascinating insight into the disconnection between rational analysis and action.' Jeremy Newsum, Group Chief Executive, Grosvenor Group Holdings

William Seabrooke is the editor of International Real Estate: An Institutional Approach, published by Wiley. Paul Kent is the editor of International Real Estate: An Institutional Approach, published by Wiley. Hebe Hwee-Hong How is the editor of International Real Estate: An Institutional Approach, published by Wiley.

Contributors ix Foreword by Jeremy Newsum, Grosvenor Group Holdings xi Preface xiii Part 1 Analysis of Real Estate Transactions in Unfamiliar Markets, Using an Institutional Approach 1 1 Real Estate Transactions: an Institutional Perspective 3 William Seabrooke and Hebe Hwee Hong How The international real estate phenomenon 3 Real estate transactions and transacting 4 Transaction cost concepts 14 A transaction-based approach lends itself to institutional analysis 28 2 Resolving Institutional Uncertainty in International Real Estate Decisions 35 William Seabrooke and Paul Kent The institutional nature of transactions 35 Real estate transactions 37 A scoping template for 'mapping' the institutional 'landscape' within which a real estate transaction takes shape 55 Conclusion 70 3 An Institutional Analysis of the Subject Matter of Real Estate Transactions 73 Paul Kent Property rights in institutional analysis 73 Institutional determinants of title to real estate in Hong Kong 76 Institutional determinants of property rights in real estate in the PRC 81 Conclusion 88 Part 2 Evolution of the Institutional Context of International Real Estate 93 4 Local Property Markets and Effective Flexible Market Institutions 96 Michael A. Goldberg The issues 96 Global forces introduced: an overview 97 Indications of global integration in urban property markets 100 Local, regional and national forces impinging on global cities 102 Globalisation of world city property markets: observations and caveats on volatility 105 Vancouver: an emerging world city facing prototypical issues in the global economy 107 Vancouver's globalised property market: the cycle of the late 1980s 111 Policy issues and fl exible institutional responses for global cities when they are both determinants and outcomes of globalisation 113 Public attitudes to cope with change 115 Possible national government roles in urban policy in a global setting 119 Growing vulnerability of cities in the connected global environment 122 Conclusions 122 5 Facilitation and Constraint: Institutions of Urban Planning in Hong Kong 130 Bo Sin Tang, Sujeet Sharma, Stanley Chi Wai Yeung Urban planning and development control 133 Planning, politics and economy 144 Conclusions 148 6 Emerging Institutions in Europe 155 Derek C. Nicholls Historical context 155 Single market 157 Single continent? 160 Implications for real estate markets 168 7 Institutional Aspects of Real Estate Investment and Project Appraisal 173 Eddie Chi Man Hui and Yat Hung Chiang Institutional aspects 173 Institutional features of project appraisal 186 Role of international funding agencies: the World Bank and the Asian Development Bank 190 Conclusion 193 Part 3 Institutional Aspects of National Real Estate Markets 197 8 US Pension Funds and Real Estate: Still Crazy After All These Years 200 Bernard Winograd In the beginning... 201 The end of innocence 204 The cavalry arrives 205 The pension funds react 211 Where do we go from here? 215 9 Real Estate Markets in the United States 220 Mark J. Eppli and Charles C. Tu The interrelation between the space and capital markets 223 Space markets in the United States 227 Capital markets in the United States 235 The space market/capital market disconnection 245 Summary 259 10 Real Estate Markets in the United Kingdom 262 Andrew Baum UK real estate: the asset class 262 The sectors: principal characteristics 266 The vehicles available for property investment 269 Commercial property owners 282 Property fund managers and advisers 284 The role of government 288 Conclusion 290 11 Real Estate Markets in Canada 293 C. Tsuriel Somerville Government institutions and real estate 295 Property rights 299 Land-use regulation 302 Canadian real estate markets 306 Conclusion 321 12 Real Estate Markets in Japan 325 Yu Ichiro Kawaguchi The Japanese rent