Property Cycle Research Paper Example | Topics and Well Written Essays - 7500 words

Property Cycle - Research Paper exerciseRecent studies have shown that fluctuations in property cycle produces economic adversity to certain areas such as property, finance, socio-economic performance and have profound international impacts (Cedic Pugh and Alireza, 2001). The recent economic and financial crisis developed in ASEAN countries on the overheated property investments is suspected to be the main cause for this.Though valuation theorists traditionally neglected cycles arising from the predictability of this area of study in their valuation frameworks and models, similar to that of many social sciences (Born and Pyhrr, 1994 Pyhrr, Born, Robinson and Lusac, 1996), many studies support the relevance of these cycles, for instance Institution of Charted Quantity Surveyor of United kingdom prepared a printed document for its members specifically addressing the functional implication of Britains property cycles.Stepen A. Pyhrr, Stephen E. Roulac and Waldo L. Born (1999) tracin g back to the happenings of early 1930s, provided a fairy exhaustive appraise and laid a good foundation for the body of knowledge of development of property cycles. Figure 2 represents a briefed summary of their work.Nikolai Kondratiett in 1928 noticed severe economic depressions in Russian economy that occurred on a regular basis at 45 to 60 year span. These depressions followed by another long surge of business activities resulted in new peaks of economic outputs and prosperities (Stoken, 1993, cited in Stephen et al 1999). Depressions of this nature often referred to as recessions seemed to occur during 25 to 35 year up cycle period. Similarly in the west, Mitchell (1927, cited in Stephen et al 1999) suggested theoretical foundation and provided an confirmable evidence for cyclical economic activities in U.S... Further works of many writers such as Schumpeter, Forrester and Rostow added more than potency to this idea. Other highly noticeable studies on cycles came from Roy We nzlick who studied the long cycles of