Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009

At the present time, more individuals are becoming interested in investing in real estate properties since the Philippine real estate market is starting to develop. Because of this, the paper will examine the ability of Philippine real estate properties to hedge against inflation, which includes com...

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Main Authors: Co, Hannah Stephanie L., Go, Katherine Xina N., Lorenzo, Katherine Grace L., Sy, Jensine Daphne E.
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Language:English
Published: Animo Repository 2013
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Online Access:https://animorepository.dlsu.edu.ph/etd_bachelors/9888
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Institution: De La Salle University
Language: English
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spelling oai:animorepository.dlsu.edu.ph:etd_bachelors-105332021-08-19T07:46:28Z Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009 Co, Hannah Stephanie L. Go, Katherine Xina N. Lorenzo, Katherine Grace L. Sy, Jensine Daphne E. At the present time, more individuals are becoming interested in investing in real estate properties since the Philippine real estate market is starting to develop. Because of this, the paper will examine the ability of Philippine real estate properties to hedge against inflation, which includes commercial (office) and residential (condominiums) properties in specific areas like Makati CBD, Fort Bonifacio, Ortigas Center, and Eastwood City. In order to do this, the property returns will be tested independently against both expected and unexpected inflation using the Fama and Schwert (1977) model which is the ordinary least square (OLS) method. This study will also use Johansen test in order to identify whether there is a cointegration equation between the variables. Also, error correction models such as the vector error-correction model and Preis Winsten and Cochrane Orcutt model will be used in order to correct autocorrelation if it is present. The autocorrelation will be known after accomplishing the OLS, Durbin Watson test, and Breusch Godfrey test. In residential properties, the end result shows that there is a partial hedge against expected inflation in Makati CBD and showed a partial hedge against unexpected inflation. On the other hand, the results for the commercial properties states that only Ortigas Center has a partial hedge against expected inflation and none for the unexpected inflation. As a whole, even if residential and commercial properties offer a partial hedge against both expected and unexpected inflation, it is not statistically significant. 2013-01-01T08:00:00Z text https://animorepository.dlsu.edu.ph/etd_bachelors/9888 Bachelor's Theses English Animo Repository Real estate business--Philippines Condominiums--Philippines
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
language English
topic Real estate business--Philippines
Condominiums--Philippines
spellingShingle Real estate business--Philippines
Condominiums--Philippines
Co, Hannah Stephanie L.
Go, Katherine Xina N.
Lorenzo, Katherine Grace L.
Sy, Jensine Daphne E.
Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
description At the present time, more individuals are becoming interested in investing in real estate properties since the Philippine real estate market is starting to develop. Because of this, the paper will examine the ability of Philippine real estate properties to hedge against inflation, which includes commercial (office) and residential (condominiums) properties in specific areas like Makati CBD, Fort Bonifacio, Ortigas Center, and Eastwood City. In order to do this, the property returns will be tested independently against both expected and unexpected inflation using the Fama and Schwert (1977) model which is the ordinary least square (OLS) method. This study will also use Johansen test in order to identify whether there is a cointegration equation between the variables. Also, error correction models such as the vector error-correction model and Preis Winsten and Cochrane Orcutt model will be used in order to correct autocorrelation if it is present. The autocorrelation will be known after accomplishing the OLS, Durbin Watson test, and Breusch Godfrey test. In residential properties, the end result shows that there is a partial hedge against expected inflation in Makati CBD and showed a partial hedge against unexpected inflation. On the other hand, the results for the commercial properties states that only Ortigas Center has a partial hedge against expected inflation and none for the unexpected inflation. As a whole, even if residential and commercial properties offer a partial hedge against both expected and unexpected inflation, it is not statistically significant.
format text
author Co, Hannah Stephanie L.
Go, Katherine Xina N.
Lorenzo, Katherine Grace L.
Sy, Jensine Daphne E.
author_facet Co, Hannah Stephanie L.
Go, Katherine Xina N.
Lorenzo, Katherine Grace L.
Sy, Jensine Daphne E.
author_sort Co, Hannah Stephanie L.
title Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
title_short Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
title_full Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
title_fullStr Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
title_full_unstemmed Real estate returns, a hedge against inflation: A study of both office and condominium properties in Metro-Manila, Philippines between 2002-2009
title_sort real estate returns, a hedge against inflation: a study of both office and condominium properties in metro-manila, philippines between 2002-2009
publisher Animo Repository
publishDate 2013
url https://animorepository.dlsu.edu.ph/etd_bachelors/9888
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