Globalization of real estate markets in Central Europe

The process of globalization is increasing competition between urban areas for the attraction of investment. Within this context the paper initially highlights the impact of global change on city economies linking this to international investment within the real estate market. Factors influencing diversification strategies and international investment activity within property markets in central Europe are considered relative to a range of performance criteria. Office markets in Prague, Budapest and Warsaw are forwarded as case study examples to assess the degree of maturity that is occurring in these former socialist cities based on the activity of investors and end‐users including the extent to which there are dual markets operating for local and international actors.     

Private rental investment and socio-spatial disadvantage in Sydney,Australia

This article unpacks the connection between a growing cohort of small-scale but purposive property investors and urban socio-spatial restructuring. We analyse private rental housing as a tenure share to demonstrate its spatial correlation with the suburbanisation of socio-economic disadvantage in Sydney, Australia, between 1991 and 2016. Then, we show how investors drive this emerging pattern by reference to the geography of property owners’ stated investment objectives—low capital outlay, rental yields, and capital growth prospects. We contend that the link between their small-scale activities and the city’s changing socio-spatial structure is an overlooked consequence of private rental sector (PRS) housing financialisation. Importantly, our focus on behaviours exhibited by small-scale rental property owners in PRS financialisation transcends existing analyses that have concentrated on corporate entity activity in this space. That focus also contrasts with framings of private rental growth as a residual outcome of developments elsewhere in the housing market. Such work is significant because it demonstrates the impacts of real estate investment on urban form.     

Financial Globalization,Local Debt Markets and New State Financial Activism in Middle-income Countries

Since the global financial crisis of 2008–09, there has been a renewed interest in the role of the state in processes of financial development and globalization. This article explores new forms of state economic activity via the development of debt capital markets in Southeast Asia, specifically Indonesia and Malaysia. It suggests that the expanding profile of various state-controlled entities in local capital markets constitutes a new form of state financial activism responsive to (upper) middle-class consumption preferences such as modern infrastructure, urban housing and low-risk investments. This activism highlights state agency and complicates the propositions of the emergent literature on state capitalism and financial de-risking that focuses on increasingly close alignment of the interests of states and international portfolio investors. Accordingly, the authors caution against unilinear conceptions of the state in which activism is primarily geared towards accommodating the preferences of international investors. The article posits that states are actively trying to establish new market logics for the benefit of their domestic middle classes via the development of domestic capital markets, and that the emergent role of middle-income country (upper) middle classes as financial consumers reconfigures processes of state-managed financialization.     

外资流动的动力学研究——以广东省为例

资本流动受推力、引力和阻力作用,在空间上先向中心城市和交通干线集聚,然后沿城市体系和交通干线作"蛙跳"式、点线式推进,最后向乡村面状扩散。资本流动对流入地区产生正负两方面的影响。投资环境建设和引资工作应针对不同阶段资本流动的特点和驱动因素,采取相应的政策,调控外资流动,减少负面影响,使利用结构合理化。     

The changing role of the FIRB and the politics of foreign investment in Australia

ABSTRACT

Australia’s policy on foreign investment aims to achieve both the liberal goal of maximising capital inflows and the statist one of ensuring that those inflows are in ‘the national interest’. This article analyses the tensions between these goals through interviews with policymakers who have direct knowledge of the Foreign Investment Review Board (FIRB), which has functioned as an ‘offstage’, pre-market regulator for capital inflows to Australia. The tensions between these policy goals were manageable because the FIRB exercised its powers rarely, decisively and quietly, and the government believed that foreign investment did not threaten the national interest. The emergence of state-owned enterprises as foreign investors, however, significantly altered this calculus, and the FIRB has been tasked with assessing the national security implications of proposed investments. Instead of working offstage, as in earlier decades, the FIRB has become central to debates about how Australia should respond to the rise of China.     

Tourism and Foreign Investment in Australia: Trends,Prospects and Policy Implications

Processes of internationalisation and structural economic change have had profound impacts on the pattern of regional economic activity in Australia. The 1980s was a decade of rapid growth in foreign investment, reoriented to the property and services sector, including tourism. It was also a boom time for international tourism, which emerged as the nation's leading export industry. In addition to the national gateway city of Sydney, the rapidly growing coastal cities of Gold Coast and Cairns in Queensland emerged as major international tourism destinations underpinned by significant levels of foreign investment, particularly from Japan. The 1980s boom years for tourism and foreign investment are revised and raises policy implications raised for the longer-term development of tourism and the role of foreign investment.     

Inward investment and economic development in Poland

This paper summarizes results of a research project funded by the Overseas Development Administration of the UK Government. Its aims were to explore the nature and extent of foreign direct investment in Poland, and to assess the extent of integration of such investment with the indigenous economy. The research involved interviews with Polish government ministries, banks, development agencies, inward investors and indigenous firms. It concludes that there are numerous financial and technical obstacles to indigenous business development. The majority of inward investors aim to serve the Polish and other Central and Eastern European markets rather than simply selling cheaply produced products to the West. Moreover, most have already developed significant local sourcing from Polish suppliers.     

Extracting Value from the City: Neoliberalism and Urban Redevelopment

How do states make the built environment more flexible and responsive to the investment criteria of real estate capital? Spatial policies, such as urban renewal funding for slum clearance or contemporary financial incentives, depend on discursive practices that stigmatize properties targeted for demolition and redevelopment. These policies and practices have become increasingly neoliberalized. They have further distanced themselves from those “long turnover” parts of the city where redevelopment needs are great but where the probability of private investment and value extraction is slight. They have become more entwined in global financial markets seeking short–term returns from subsidized property investments. They have shifted their emphasis from compromised use values (embodied in the paternalistic notion of “blight”) to diminished exchange values (embodied in the notion of “obsolescence”). I argue that obsolescence has become a neoliberal alibi for creative destruction and, therefore, an important component in contemporary processes of spatialized capital accumulation.     

东北地区资源型城市资源诅咒效应及传导机制研究

通过面板数据固定效应模型,利用东北地区23个资源型地级城市1999-2012年的数据,分析了东北地区资源型城市资源诅咒效应的存在性与主要传导机制。结论显示东北地区资源型城市存在资源诅咒效应;物质资本投资对经济发展起到最为明显的促进作用,制造业投入和教育业投入也具有一定的促进作用,但作用不够显著。城市开放程度与经济发展之间呈现负相关关系,而城市类型与经济发展不存在明显相关关系。传导机制方面,资源诅咒效应主要通过抑制制造业发展、物质资本投入和教育业投入来阻碍经济增长,其中对制造业的负面影响是主要传导因素。煤炭和石油型城市体现出较为明显的人力资本挤出,而其他类城市传导机制作用则比较平均。     

The regulation of direct foreign investment in the Australian mining sector

Although Australia has relied on foreign capital and multinational corporations to develop its mining sector, it has been successful in restricting foreign ownership and control to 50 per cent The Australian experience provides a valuable case study because its successive minerals and energy booms in the last two decades occurred before and after restrictions were imposed and the Foreign Investment Review Board established in the mid‐1970s. During the prior minerals boom when there were virtually no restrictions, levels of foreign ownership and control increased from less than 30 to 50 per cent. During the second energy boom, in the late 1970s to early 1980s, a firm policy of 50 per cent Australian participation in all mining projects was successfully implemented. Australia did not become a ‘client state’ of international capitalism, nor did its federal system preclude the regulation of foreign investment The article summarises the results of Australia's regulatory policy and examines the political and policy reasons for its success.     

The Political Economy of Housing Investment in the Short-Term Rental Market: Insights from Urban Portugal

Short-term rentals (STRs) emerged as holiday accommodations, disrupting the hospitality industry in the decade before COVID-19. Mainstream explanations for their growth revolved around digital tourism platforms like Airbnb as market disruptors and the sharing economy rationale. At the same time, critical scholars explored the capitalisation of greater rent gaps in urban central locations. However, these explanations are insufficient to explain the growth of STRs. We supplement them by building bridges between the urban political economy and the geographies of financialisation through the cases of Lisbon and Porto before the pandemic. The paper focuses on tourism-induced housing investment, taking a closer look at the profile of investors in association with STR property managers in the context of the late-entrepreneurial urban regime. We conclude that tourism development has allowed opportunities for housing financialisation through STR professionalisation, enhancing the allocation of interest-bearing capital in tourism-oriented real estate.     

Property Sector Financialization: The Case of Swiss Pension Funds (1992–2005)

Financialization is a major trend in Western economies. This paper shows, on the one hand, how it changes the management criteria and, on the other hand, the limits to financialization in the property sector. Between 1992 and 2004, about 15% of Swiss pension funds' wealth was invested in property. As far as their investment policy is concerned, pension funds have two choices. First, they can directly own, and have management responsibility for, the properties in their portfolios. Alternatively, they can buy shares in mainly Zurich-based investment vehicles. In the first case, pension funds require staff with the relevant expertise along with the knowledge of property markets. Investments have a regional focus and are assessed internally by the funds. In the second case, pension funds are merely investors and investment appraisals and comparisons are made on the basis of market criteria such as yield, diversification in relation to risk and liquidity. In this case, property investments focus solely on the country's main urban areas.     

Resource nationalism or resource liberalism? Explaining Australia's approach to Chinese investment in its minerals sector

Since 2005, a burgeoning wave of Chinese investments has set off a new ‘minerals boom’ in the Australian iron ore and coal mining sectors. While normally a welcome development, the state-owned and strategic nature of the investors has raised concerns in Australia about how these should be regulated. As a result, in February 2008 the Australian government declared an intention to more closely screen foreign direct investment (FDI) from state-owned sources, which both supporters and detractors alike have claimed is evidence of ‘resource nationalism’ in Australia's approach towards its trade and investment relationships with China. This article challenges this understanding through an examination of the characteristics of Chinese mining FDI, the dilemmas these present to the Australian government, and the relatively restrained nature of its response. Through this, Australia's FDI policy is explained as a defensive move against the potential for strategic behaviour by Chinese investors resulting from their state ownership, rather than any national program to subject minerals trade and investment to political control. On this basis, the article argues that Australian government policy instead evidences a ‘resource liberalism’ approach, which intends to ensure that the governance of Australia's minerals trade and investment with China remain market-based processes.     

Rethinking suburban development in Australia: a Melbourne case study

This article considers suburban development in Australia through the lens of its second largest city, Melbourne. Contemporary urban policies have focussed on the low densities within Australia's capitals and tried to achieve sustainability through urban consolidation policies. The article argues that these policies are often based on a distorted understanding of the relationship between housing markets and labour markets in Australia's large metropolises. The analysis of suburban development in Melbourne shows that suburban development involves complex links between changes in housing and job location and that urban sustainability policy needs to include actions designed to change the distribution of employment as well as the location and density of housing. The article shows that the vast spread of the Melbourne population masks closely linked regional labour and housing markets.     

Recent Trends in the Internationalisation of the New Zealand Economy

Over the last decade, but particularly since 1984 when the fourth Labour Government came to power, New Zealand has become something of an experimental test bed for the implementation of monetarist ideas of political and economic management. A noticeable outcome of the policy regime recently put in place has been a dramatic ‘opening up’ of the economy as markets are deregulated, protection barriers lowered, and restrictions on movement of capital in and out of the country removed One consequence has been a quantitative and qualitative change in the internationalisation of the economy. This paper traces the nature and extent of this process, and speculates on some policy implications. Four key dimensions of the internationalisation process are surveyed: the expansion of New Zealand capital off-shore, increased levels of foreign investment in New Zealand, the impact of reductions in border protection, and closer economic relations between Australia and New Zealand.     

The US Dollar's Continuing Hegemony as an International Currency: A Double‐matrix Analysis

The standard framework for debating the international currency system casts doubt on the dollar's continuing hegemonic position because it raises questions regarding the ability of the US to finance its external liabilities in the face of worsening economic fundamentals. This article addresses these questions by adding to the usual matrix linking the international functions of money to two different types of agents, private and official, a second matrix linking the functions of money to two different types of commodities, material goods and services on the one hand, and financial securities on the other. Once it is understood that bonds and equities are now not only different types of funding instruments but also different types of commodities whose use value to the world's large investors is to serve as stores of value, it is possible to understand why the size of the US capital markets will long continue to bind foreign investors to the dollar because it will be some time before other capital markets will reach a comparable size.     

How real estate became ‘just another asset class’: the financialization of the investment strategies of Dutch institutional investors

The managers of a growing wall of money are continuously searching for investment opportunities. The financialization literature describes how this mobile capital puts pressure on commodities, debt, public services and economic activities to transform into investable, tradable, financial products. Regarding real estate, these investigations show how opaque, local, non-standardized goods, highly depending on both local legislation and developments, have been transformed into liquid, globally traded financial assets. By analysing the real estate investment strategies of Dutch institutional investors since the 1980s, this paper shows how a quantitative framework increasingly provides the basis for institutional investors’ real estate investment strategies. Direct ownership of properties has been exchanged into shares of properties, that is, fictitious capital, creating an impetus for ‘objectified numbers’ to measure the performance of these indirect investments. As knowledge about real estate has been outsourced, Dutch institutional investors now perceive real estate increasingly as ‘just another asset class’, thereby increasing leverage and volatility. This paper not only shows how finance ‘financialized’ itself by adopting a quantitative investment perspective, but it also offers an empirical account on how investment properties are transformed into financial assets that put pressure on state agencies to mobilize urban planning to deliver more of such assets.     

JAPANESE REAL ESTATE INVESTMENT IN CANADIAN CITIES and REGIONS, 1985–1993

The location and type of Japanese property investments in Canada are examined as a case study of the increasing globalization of property markets and the remarkable rise of Japanese international investors in the late 1980s. Unpublished official statistics and company interviews indicate investment patterns had uneven implications for Canada's cities and regions. Even though Toronto is often seen as Canada's world city, Japanese investors as a whole overlooked the commercial potential of its property markets. The majority of their real estate investments took advantage of Japanese tourism growth in Pacific Canada and were associated with hotels and golf courses in Vancouver and its surrounding region. The author stresses the importance of Japanese perceptions, as well as local opportunities and constraints, in shaping the geography of Japanese real estate investment in Canada. L'emplacement et le type des investissements japonais au Canada sont examinés comme étude de cas sur la globalisation croissante des marchés de biens et la mon-tée remarquable des actionnaires internationaux japonais à la fin des années 80. Les statistiques officielles non-publiées montrent des implications inégales dans les villes et les régions du Canada. Bien que Toronto soit considéré souvent comme la ville mondiale du Canada, les actionnaires japonais dans ?ensemble ont négligé son potentiel commercial. La majorité des investissements sur les biens immobiliers ont pris avantage de la croissance du tourisme japonais au Canada Pacifique, et fut liee aux hotels et terrains de golf à Vancouver et dans les environs de la ville. ?auteur souligne ?importance des perceptions japonaises, aussi bien que les occasions et contraintes locales, en façonnant la géographie de leur investissement de biens au Canada. Mots-clés: investissement de biens au Canada; actionnaires japonais; investissements immobiliers     

Emerging Chinese Role in Shaping St. Petersburg's Urban Landscape: Interscalar Investment Strategies in the Development of a Residential Megaproject

The paper, by an American geographer, discusses the origin and development of a Chinese-financed residential megaproject (Baltic Pearl) located southwest of St. Petersburg's historical district. Viewing Baltic Pearl as reportedly the largest investment project undertaken outside China by a government-sponsored Chinese consortium, the author places it in the context of state-level Sino-Russian relations and Russian unease over the influx of Chinese migrants and culture. Reflecting the author's extensive field work in St. Petersburg and Shanghai, the focus of the paper is on the way the consortium was forced to adopt interscalar (i.e., both state and municipal/urban) strategies responsive to local conditions, providing a potentially useful precedent and model for Chinese and other investors seeking to penetrate Russia's urban markets.     

Foreign Direct Investment and Democratic Development in the Russian Provinces: A Preliminary Analysis

Foreign investment in Russia has consistently lagged behind East European countries throughout the last decade. Although formidable obstacles to attracting foreign investment remain throughout the country, some of Russia's 89 provinces have been more successful than others in creating attractive investment environments. One reason for this varied success may be related to the degree of economic and political elite consensus that exists in some regions. This, in turn, may help in the formulation of incentives to attract foreign investors. However, the political consensus that helps to establish a stable policy environment for foreign investment may well imperil pluralistic political development in the long run. Thus, we must be wary of conflating foreign investor interest with liberal politics and democratic development in Russia's regions.