Pricing of Real Estate Specific Market Risks for Worldwide 66 Countries

Pricing in an illiquid real estate market

Using a repeat sales data set, this paper tests whether a single small seller can influence the selling price of their house. We find that this influence exists and that it dominates the influence of commonly-used market conditions. Since the estimated magnitude of this effect is much higher than expected, we verify the estimate using several supplementary tests. JEL: C78, D80, R21, R31

Further Evidence on Real Estate Market Efficiency

This article investigates the extent to which condominium apartment prices in Vancouver, British Columbia are set in an efficient asset market. The empirical results provide strong evidence against market efficiency. A number of instruments, including lagged annual returns and a measure of the deviation of price from fundamental or intrinsic value, to some extent predict future returns. This su...

The Nascent Market for “Green” Real Estate in Beijing

In recent years, formal certification programs for rating and evaluating the sustainability and energy efficiency of buildings have proliferated around the world. Developers recognize that such “green labels” differentiate products and allow them to charge a price premium. China has not formally adopted such rating standards. In the absence of such standards, developers are competing with each ...

The Pricing of Embedded Options in Real Estate Lease Contracts

Leases and rental agreements often have options attached or embedded in them. These options sometimes depend on a number of economic variables such as the Consumer Price Index (CPI), a real estate index and/or the value of real estate underlying the agreement. The evaluation of these options often involves the solution or approximation to a partial differential equation (PDE). This study analyz...

The contribution of a mature real estate market to urban regeneration: What are the prerequisites?