ABSTRACT
Direct real estate investment in, for example, housing, shops, car parks . . . offers a golden chance for global investors to reap a huge profit. The direct real estate market suffers from various problems – it is obsolete, indivisible, the requirement of huge sums of money, complicated taxation policies and so on – so many small investors invest in the indirect real estate markets instead. Moreover, owing to higher liquidity, smaller transaction costs, the existence of a public market place, larger number of market participants, the indirect real estate market is more efficient than the direct real estate market (Li and Li 2011). Hence, there is more indirect investment in recent years and the expansion of indirect investment has also led to individuals focusing on the indirect real estate market: such as, property stocks and REITs (Li and Chow 2015, Li and Li 2011).
