Emerald | Property Management

Property Specific Criteria for Office Occupation by Tenants of Purpose Office Buildings in Kuala Lumpur, Malaysia

Yasmin Mohd Adnan, Md. Nasir Md. Daud, Muhammad Najib Razali — 2012-04-06 00:00:00.0

Abstract

Purpose - The purpose of this paper is to identify the important property specific criteria for office occupation decision making by tenants at purpose built office buildings in Kuala Lumpur, Malaysia. It attempts to provide more definitive information on office space occupation information to prospective property marketers, managers, owners and investors.Design/methodology/approach - A questionnaire survey was conducted to identify the important criteria which were earlier selected by expert panels. The outcome is then analysed through the principal component analysis and important factor index adopted from an earlier study. The findings of the survey shall then be used to examine the relative importance of the identified criteria through the use of multi criteria decision making (MCDM) techniques with the aim of developing a framework of decision-making from the various profiles of tenants. Findings - It is found that the there are four (4) main criteria which can be identified under the property specific criteria. Six (6) of the ‘Building Features, Services and Management’ attributes have higher ranking than the attributes under the ‘Financial’ considerations, mainly rent. The high rank attributes under the main criteria of ‘Location’ relates to the prestige and accessibility to the building while the high rank criteria under the main ‘Lease’ criteria relates to the monetary considerations of the lease arrangement. The high rank criteria under the main criteria of ‘Building Features, Services and Management’ relates to the management and building services rather than the design/space provision.Research limitations/implications - The study area is confined to Kuala Lumpur City Centre Commercial area and covers prime office buildings. The sample used the available number of tenants provided by the tenants’ directory at the respective buildings which may provide an outdated status of occupancy.Practical implications - .Originality/value - Office occupation studies have been established in developed countries but are very limited in Malaysia. This study attempts to relate to the current office market developments and to seek the preference of the various categories of tenants at a later stage.

Compliance concerns of environmental laws at building design stage: Transaction cost considerations

Franky W. H. Wong, Edwin H. W. Chan, Patrick T. I. Lam — 2012-04-06 00:00:00.0

Abstract

Purpose - This study aims to identify the most critical concerns of property developers in terms of the transaction costs involved in compliance with environmental laws at the building scheme design stage when key design decisions are made.Design/methodology/approach - Sixteen structured interviews have been carried out with experienced industry practitioners in Hong Kong. Transaction Cost Theory is used to explain the regulatory compliance costs.Findings - The results show that the most significant impacts of transaction costs were due to uncertainties in negotiations with government, which takes time to obtain approvals and overcome ambiguous legislative requirements.Research limitations/implications - Practical implications - The government could make use of the research findings to formulate a clear environmental policy to coordinate various departments and laws to address uncertainty with time for project delivery, and conduct quantitative regulatory impact assessments in the development of new legislation.Originality/value - This study has identified and explained "uncertainties" as the most critical concern for property developers in terms of the transaction costs involved in compliance with environmental laws. The results of this study would help policymakers to improve policy design, which would in turn increase efficiency and productivity in the property development process.

Revitalising Historic Buildings through Partnership Scheme – A Case Study of the Mei Ho House in Hong Kong

Esther Cheung, Albert P.C. Chan — 2012-04-06 00:00:00.0

Abstract

Purpose - Hong Kong has undergone a rapid transformation from a small fishing village to one of Asia’s top commercial cities. With the booming economic development that it has undergone, heritage has been criticised as largely neglected. To respond to this criticism proactively, the local government introduced a "Revitalising Historic Buildings through Partnership Scheme" which is considered as an innovative social Public-Private Partnership initiative. However, it is still early stages and the effectiveness of this scheme is yet to be evaluated. The purpose of this paper is therefore to evaluate the success of this innovative scheme by means of a case study.Design/methodology/approach - The case study approach has been adopted to analyse the effectiveness of this scheme. The Mei Ho House is a Grade I listed building marking the history of early public housing in Hong Kong. This project was studied thoroughly by looking at the historical background, the selected service provider, project details, historical significance, social benefits and public opinion.Findings - The findings indicate that the scheme has been implemented effectively to revitalize historical buildings such as Mei Ho House. Efforts have been made to preserve these buildings into innovative use, uplift local culture and social benefits. In addition, an effective partnership arrangement between the public and private parties has been established.Originality/value - The analyses will help to assess whether the proposed scheme has been successfully implemented. As a result, the suitability of using this scheme for future projects in Hong Kong or even other jurisdictions will be recommended. The proposed scheme will be an innovative and alternative approach for preserving and restoring historical buildings if proved to be feasible.

How Do Appraisers Absorb Market Information in Property Valuation? - Some Experimental Evidence

Tzu-Chin Lin, Hsiao-Yen Chang — 2012-04-06 00:00:00.0

Abstract

Purpose - Despite its popularity in practice, sales comparison is constantly criticized as subjective and even relegated to the least recommended method by some scholars. We intend to examine the validity of the above statement.Design/methodology/approach - A number of statistic techniques have been proposed to improve the objectivity of the sales comparison approach. In contrast, property valuation can also be seen as an exercise of human problem-solving with respect to market information. As a result, the approach of a controlled experiment is employed. Findings - First, experienced appraisers tend to adopt an appraisal process that significantly differs from that specified in legal standards. Second, appraisers have developed a specific-to-general information inquiry path. Third, appraisers are likely to stop examining additional sales evidence early when the appraised subject is a typical product. Fourth, appraisers have a tendency to weigh the comparables that come to their attention earlier more heavily than those that come later. Finally, despite the different strategies of information absorption, value variations among appraisers are consistent between different residential properties. The evidence, taken together, strongly suggests that professional appraisers have developed some heuristics or short-cuts in digesting information relevant to appraisal.Originality/value - This study is one of the very few that examine the appraisers' decision-making in Taiwan.