Market Mechanism Choice and Real Estate Disposition: Search Versus Auction

2002 ◽  
Author(s):  
Daniel C. Quan
Keyword(s):  
Real Estate ◽  
Market Mechanism

scholarly journals Managing Bubbles in the Korean Real Estate Market: A Real Options Framework

2018 ◽  
Vol 10 (8) ◽  
pp. 2875 ◽  
Author(s):  
Kyungwon Kim ◽  
Jae Song
Keyword(s):  
Real Estate ◽  
Real Options ◽  
House Price ◽  
Investment Strategy ◽  
Real Estate Market ◽  
Market Mechanism ◽  
The Real Estate ◽  
Early Exercise ◽  
Related Information ◽  
Real Options Valuation

The aim of this paper is to propose a real options framework to measure and manage bubbles in the Korean real estate market. The proposed framework carefully defines and utilizes the unique leasing mechanism in Korea, called the Jeonse system, a tentative contract for one or two years with a large amount of deposit, to represent the value of residence. Furthermore, the proposed framework applies the volatility with heteroscedasticity to improve the numerical accuracy in comparison to the traditional real options valuation model. The results of the model ultimately suggest the investment strategy that takes into account the measured bubbles in the market. Specifically, given that the Korean real estate market could be regarded as an American option, the investment strategy with early exercise completely eliminates the existing arbitrage opportunities in both long and short positions. In this context, the investment decisions based on the results of the proposed framework are expected to encourage the reflection of bubble-related information in the market, which eventually reduces the formation of bubbles via market mechanism for arbitrage elimination. In conclusion, the bubble-related information obtained from the model is expected to contribute to the stability of the real estate market by reducing the volatility of house price and quick price adjustment to new information.

scholarly journals International Real Estate Review

2009 ◽  
Vol 12 (2) ◽  
pp. 171-192
Author(s):  
Yan Li ◽  
◽  
AHongling Guo ◽  
Yaowu Wang ◽  
Feng Wang ◽  
...  
Keyword(s):  
Control System ◽  
Information Systems ◽  
Real Estate ◽  
Warning System ◽  
Real Estate Market ◽  
Market Mechanism ◽  
Market Regulation ◽  
Continuous Increase ◽  
The Real Estate ◽  
Efficient Information

With the continuous increase of marketization and normalization in the Chinese real estate market, the market mechanism now plays an important role in market regulation. The existing macro-control system for the real estate market, however, appears to lack the ability to regulate it. Thus, an effective and efficient information-oriented tool is needed to guide the development of China’s real estate market. The research reported herein constructs a new macro-control system for this market that is based on information systems, specifically, a real estate warning system, a confidence index system, and a simulation system. This paper first presents the framework of the new information systems-based macro-control system, and its functions are analyzed. The methods of constructing the system are then discussed. Based on these methods, the index systems of the respective information systems are established, and the main models are presented. Finally, a case study that is based on survey data from the Shenzhen real estate market is described to demonstrate the applicability of the new macrocontrol system.

Real Estate Fraud

2008 ◽  
Author(s):  
Daniel Bradley
Keyword(s):  
Real Estate

Overcoming stereotypes in leasing

2017 ◽  
pp. 136-152 ◽  
Author(s):  
V. Gazman
Keyword(s):  
Real Estate ◽  
Traditional Approach ◽  
Critical Assessment ◽  
Variable Character ◽  
New Perspective

If we want securitization to become one of the main channels to attract funding in leasing activity, as the Bank of Russia predicts, one needs to revise some stereotypes. Relying on foreign and domestic research, the author gives a critical assessment of the postulate of the need for uniformity of securitized assets; proves that real estate, contrary to the traditional approach, rather than equipment and transport, prevails in securitization transactions, and explains why this happens. The article presents a new perspective on the behavior of issu- ers concerning the timing of securities circulation; considers feasibility approach to the calculation of variable character of leverage in leasing; explains pro and contra of evaluating the leasing market based on the volume of the portfolio of contracts; reveals the validity of ratings of bonds issued in the course of secu- ritization of leasing assets.

Problems of the US Economic Policy

2013 ◽  
pp. 129-143
Author(s):  
V. Klinov
Keyword(s):  
Economic Policy ◽  
Real Estate ◽  
Full Employment ◽  
Tax Rates ◽  
Equitable Distribution ◽  
Investment Rate ◽  
The Us ◽  
Budget Systems ◽  
Enterprise Activity ◽  
The U.S

How to provide for full employment and equitable distribution of incomes and wealth are the keenest issues of the U.S. society. The Democratic and the Republican Parties have elaborated opposing views on economic policy, though both parties are certain that the problems may be resolved through the reform of the federal tax and budget systems. Globalization demands to increase incentives for labor and enterprise activity and for savings to secure proper investment rate. Tax rates for labor and enterprise incomes are to be low, but tax rates for consumption, real estate and land should be progressive.

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