The Impact of Pricing on Time-on-Market in High-Rise Multiple-Unit Residential Developments

Weifan, LI

doi:10.1080/14445921.2004.11104165

Cited by 19 publications

(35 citation statements)

References 20 publications

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“…This is reflected in the positive and statistically significant coefficient on the indicator variable for HIGHRISE rather than the premium Wong et al (2011) found for low-rise buildings in Hong Kong. West-facing units sell for significantly less than units on the other sides of the building (similar to Li, 2004), while south-facing units garner the highest prices (similar to Shimizu et al (2010) and Choy et al (2012)). The west-facing units suffer from heat from the afternoon sun without the benefit of air conditioning.…”

Section: Resultsmentioning

confidence: 99%

Asymmetric buyer information influence on price in a homogeneous housing market

2014

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Buyers often pay different prices for almost identical houses. One possible explanation is that there are information asymmetries in housing markets. Perhaps, buyers from outside the area have higher search costs and know less about the local market relative to that of current residents. In addition, an out-of-town buyer's price expectations could be anchored to market prices in their town of origin. This study examines the effect of buyer heterogeneity in the form of geographic location on house prices. We use a new data set to examine the non-local buyer information asymmetry and anchoring hypothesis. Using transaction data from a large development in Chengdu, China, our empirical models are estimated with relatively homogeneous units sold over a short period of time by one seller to minimise possible bias resulting from omitted variables. Our results support the hypotheses that non-local buyers pay higher prices and that high price anchoring occurs.

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Section: Resultsmentioning

confidence: 99%

Asymmetric buyer information influence on price in a homogeneous housing market

2014

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“…Because all the units in a building are offered to the market at the same time, the amount of internal competition varies over time. Li (2004) finds that the number of units in a phase or project is positively related to TOM.…”

Section: Theory and Previous Researchmentioning

confidence: 98%

“…Meanwhile, An, Cheng, Lin, and Liu (2013) assert that in a market where demand is strong and house values appreciate over time, longer TOM can lead to higher expected prices than in a stable market, encouraging a seller to hold out for a higher price. As for competition, Li (2004) finds that a higher market take up rate among competitors' presale units leads to longer TOM. Because all the units in a building are offered to the market at the same time, the amount of internal competition varies over time.…”

Section: Theory and Previous Researchmentioning

confidence: 99%

“…Kalra and Chan (1994) find a positive relationship between mortgage rates and TOM as affordability declines in the resale market. Li (2004) finds a negative relationship in the sale of new condominiums in Singapore. He suggests that the results are due to the reliance on adjustable rate mortgages, which encourages buyers to borrow even when rates are high because they know the rate will adjust down if the prime lending rate declines.…”

Section: Theory and Previous Researchmentioning

confidence: 99%

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Time-on-Market in Chinese Condominium Presales

Zhou

Zahirovic‐Herbert

Gibler

2018

International Journal of Strategic Property Management

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The condominium presale market is characterized by information asymmetry between the developer and potential buyers. A condominium developer faces conflicting incentives to sell units quickly at a lower price to generate cash and sales momentum versus to hold prices high and endure longer marketing time to maximize revenues and maintain the property’s value. We examine the pattern of marketing duration for condominium units offered for presale in a large homogeneous development in Chengdu, China using a Cox proportional hazards model. Results indicate that a patient developer may extract a price premium on units. Diminishing risk to buyers is associated with shorter marketing duration. Time-on-market is also influenced by unit and building size as well as orientation. Market conditions may moderate the speed at which units are sold.

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“…It is widely known that homebuyers, when searching for desired real property, increasingly rely on the Internet -as has been shown in numerous studies over the years (Littlefield J. E. et al, 2000;Seiler M. J. et al, 2012) Market (TOM) in relation to the listed price and pointed out toward diverse interaction effects that depend on housing markets (Cubbin J, 1974;Trippi R. R., 1977;Miller N. G., 1978;Ford J. S. et al, 2005;Li. W., 2004;McGreal S. et al, 2009).…”

Section: Introductionmentioning

confidence: 99%