Abstract:
The relationship between
property returns and the
macro economy is
important to investors'
strategies. Pattern analysis
based on correlation
models reveals the
ongoing macroeconomic
links with major international
property markets.
In this study, gross domestic
product, unemployment,
and inflation were identified
as leading macroeconomic
determinants affecting
Australian, Canadian, U.K.,
and U.S. commercial
property performance
during 1985-1999. These
macroeconomic links with
commercial property returns
revealed that over time, the
economic relationships with
property returns varied,
generally becoming weaker
while the relationship lead
time increased. This shift
suggests that explanatory
powers are not uniform
across global markets.
