|Excess Returns in the Hong Kong
Commercial Real Estate Market
Author: Gerald R. Brown and K.W. Chau
Start Page: 91
Abstract: This study examines
the existence of excess returns of the office, retail and industrial real estate sectors
in Hong Kong using time series of both valuations and transaction prices. The analysis
covers the period from 1980 to 1995. If valuations are an accurate reflection of
transaction prices then excess returns, if they exits, should be detected in both series.
Our findings confirm that excess returns can be detected in both valuation and
transaction-based series. They are not, however, persistent although there appear to be
greater opportunities for earning excess returns in the office sector.