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Long-Term Benefits from Investing in Asia-Pacific Real Estate

Author/s: Felix Schindler

Date Published: 1/01/2009

Published in: Volume 15 - 2009 Issue 3 (pages 335 - 357)

Abstract

This paper analyses long- and short-term co-movements between Asia-Pacific real estate markets and the real estate markets in the U.K. and the U.S. based on bivariate testing for cointegration and correlation analysis. The results indicate that there exist strong long-term relationships between Asia-Pacific real estate markets, while investors located in Asia would benefit from broadening their investment horizon to Australia, Europe, and the U.S. For international investors from the U.S. and the U.K., there exist long-term opportunities to diversify across the Asia-Pacific real estate markets.

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Keywords

Cointegration - Correlation Analysis - Diversification - Securitized Asia-Pacific Real Estate

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