Ting Kien Hwa

The significance of information technology on real estate agency firm earnings

The application of various forms of information technology (e.g. internet, SMS, emails etc.) in businesses have affected how brokerage are being conducted by estate agency firms. Information technology is used to attract new buyers/sellers, reduce marketing costs and to close property deals quickly. This study investigates whether information technology has a significant effect on the earnings of estate agency firms in Malaysia. The data for this research are compiled from a questionnaire survey on 97 estate agency firms. Factor analysis and regression analysis are used to examine the relationship. Analysis shows information technology has a positive significant impact on estate agency firm earnings.

Evaluation of Price Determination Methods for Malaysian Islamic Real Estate Investment Trusts

The Malaysian Securities Commission issued Guidelines on Islamic Real Estate Investment Trusts (Islamic REITs) in November 2005 which makes Malaysia a leader in developing Shariah‐compliant investment options particularly Shariah-compliant REITs. The aim of this research was to evaluate the price determination methods for Islamic Real Estate Investment Trusts (REITs) in Malaysia by using several share valuation methods, i.e. Dividend Discount Model (DDM), Net Asset Value (NAV) and Price Earnings Ratio (P/E Ratio). The study would provide an insight on the pricing of Malaysian Shariah compliant REITs namely Axis REIT and Al-Aqar Healthcare REIT. The data and information are retrieved from past 5 years annual reports. As a conclusion, valuation of REIT units is not an exact science. REIT share valuation is a highly subjective exercise by share analysts due to their professional judgements on both quantitative and qualitative aspects of a REIT. It is also a comprehensive process in that it cannot be possibly completed with just a few valuation tools. In theory, the more information an analyst has, the more he understands about the expected performance of the firm. Different methods will provide different insights on the pricing of REITs.

A system dynamic model — Based model for making decision to run PPP projects in Malaysia: Management (Thories and methodologies of enterprise management)

A decision making system is proposed to run building projects in Malaysia and is known as System Dynamic Model. The project is under Public Private Partnership Universitys student accommodation. The issue exists when the private sector failed to make decision making in determining certain financial variables such as Building Lease Charges since it affects the project IRR. This IRR is an important mark for a successful project. However, it is determined by the public sector, which delays the decision making process. Furthermore, contradiction in determining this variable could arises between the sectors. In the process of making decision to determine the variable, there will be recurring revision of previous system (financial model) including recalculation and restructuring the building lease charges amount. Hence, it makes the process too complicated and slow. Therefore, this paper aims to develop System Dynamic Model (SDM) as an alternative approach to make decision faster when determining Building Lease Charges and facilitate the process of making decision. Moreover, this SDM can simulates and analyzes the sensitivity of building lease charges to the IRR. The methodology is based on quantitative technique. Data is collected and a case study on a PPP universitys student accommodation project is used. From the research results, the parameters of Building Lease Charges which affected to the Project IRR within range 16% is RM38-RM39. The sensitivity histogram generated that there are 21 simulations for which, at time 23, Project IRR is between 17.6% and 21% and about 2 simulations in which it is between -2.8% and 0.60% The results give substantially more information than an expected Project IRR in making that judgment. It is proven that SDM could solve the problem for the associated determination of building lease charges. It is expected that the SDM can generate knowledge among researchers in solving the complex situation managements especially in real big development, investment and business projects.

Obsolescence of Green Office Buildings: A Literature Review

Abstract This paper reviews the elements or features that affect the rental or capital values of green commercial buildings. The green related factors affecting the rental and capital values of commercial property from previous studies can be classified into; (1) Physical environment, (2) Economic factors; (3) Functional attributes; (4) Design attributes; (5) Locational attributes; (6) Operating expenses/ Energy consumption; (7) Lease terms; (8) Occupancy level/ Vacancy rates, and; (9) Economics incentives. By critically reviewing past researches and methodologies, this study proposes the idea of embedding the 6-key features of Green buildings; Water and Energy efficiency, Site and locality, Construction Materials, Indoor Air Quality and Landscape and Design as the elements of commercial property obsolescence.

Depreciation between Conventional and Green Office Buildings

Abstract The principal aims of this paper are; (1) to determine the rate of depreciation for certified green and conventional purpose-built office (PBO) and; (2) to assess the relationship between building categories and green building classifications toward influencing the rental depreciation of PBO buildings. Using cross sectional survey of twenty-seven buildings in Golden Triangle area of Kuala Lumpur, the data collected were analysed using Frequency and Descriptive statistics to establish the rate of depreciation for green and conventional PBO buildings. Furthermore, the correlation and regression techniques were used to assess the significance of building categories and classifications in influencing the rental depreciation of PBO buildings. This study successfully identifies the average rate of depreciation within the dataset, with 46.77 percent. In comparison of average depreciation rate between green office buildings and conventional, the rate was observed higher in conventional class as to contrast with green class PBO buildings. Results from the correlation analysis explain the age, building categories and classifications were strongly correlated to the rental depreciation. Lastly, regression results evidenced the building categories and classifications significantly predict the rental depreciation model in 2014.

Green Attributes Affecting Investment Returns for Green Office Buildings

Green real estate investment paradigm brings a new investment option to property investors. The green office buildings are gradually replacing the conventional buildings due to the fact that green office building provides better return such as high market value and rental value, high occupancy rate and cost savings. Energy and water efficiency, indoor environmental quality, sustainable site planning and management, materials and resources and innovation are prerequisite green criteria that determine the level of greenness which distinguish it from a non-green office building. This paper discusses the green attributes in office building and its enhancement to return on investment.