scholarly journals An Improved Approach for Constructing the Real Estate Price Index with Bargaining Effect

2020 ◽  
Vol 12 (5) ◽  
pp. 1
Author(s):  
Yunyi Zhang ◽  
Huaying Gu
Keyword(s):  
Real Estate ◽  
Bargaining Power ◽  
Price Index ◽  
Nash Bargaining ◽  
Market Condition ◽  
List Price ◽  
Real Estate Markets ◽  
The Real Estate ◽  
Time On The Market ◽  
Nash Bargaining Theory

Bargaining game is ubiquitous in real estate markets due to its heterogeneity. Price index, the most important measurement the market condition, constructed with current approaches however cannot consider the effect of bargaining. Therefore, in this work, we provide a construction of price index including sellers’ bargaining power based on Nash bargaining theory and Heckman’s two-step regression. The sellers’ bargaining power is estimated from the aggregate data of list-price, sale-price and time-on-the-market. Using this method, the residential price index of an empirical example was conducted. The results are in reasonable agreement with the realistic situations, verifying the feasibility and applicability of the developed method.

scholarly journals Information Spillover Effects of Real Estate Markets: Evidence from Ten Metropolitan Cities in China

2021 ◽  
Vol 14 (6) ◽  
pp. 244
Author(s):  
Junjie Li ◽  
Li Zheng ◽  
Chunlu Liu ◽  
Zhifeng Shen
Keyword(s):  
Real Estate ◽  
Rapid Development ◽  
House Price ◽  
Principal Component ◽  
Spillover Effects ◽  
Real Estate Markets ◽  
The Real ◽  
The Real Estate ◽  
Information Interaction ◽  
Information Spillover

With the rapid development of information communication technology and the Internet, information spillover between cities in real estate markets is becoming more frequent. The influence of information spillover in real estate markets is becoming more and more prominent. However, the current research of information spillover between cities is still relatively insufficient. In view of this research gap, this paper builds a research framework on the information conduction effect in the real estate markets of 10 Chinese cities by using Baidu search data, text mining and principal component analysis and analyzes the information interaction and dynamic influence of the real estate markets in each city by using the vector autoregressive model empirically. The results show that the information interaction among the real estate markets in each city has a network pattern and there is a significant two-way information spillover effect in most cities. When the “information distance” becomes closer, the information interaction between the markets of the cities becomes closer and it is easier for cities to influence each other. The results help to explain the information spillover mechanism behind the house price spillover and to improve the ability to predict and analyze the information spillover process in real estate markets.

scholarly journals Predicting real estate market trends and value using pre-processing and sentiment text mining analysis

2021 ◽  
pp. 35-43
Author(s):  
Nikolay Sinyak ◽  
Singh Tajinder ◽  
Jaglan Madhu Kumari ◽  
Vitaliy Kozlovskiy
Keyword(s):  
Social Media ◽  
Text Mining ◽  
Real Estate ◽  
Real Estate Market ◽  
Media Analysis ◽  
Market Information ◽  
Real Estate Markets ◽  
The Real Estate ◽  
Crowd Wisdom ◽  
Market Trends

Ubiquitous growth in the text mining field is unprecedented, where social media mining is playing a significant role. Gigantic growth of text mining is becoming a potential source of crowd wisdom extraction and analysis especially in terms of text pre-processing and sentiment analysis. The analysis of a potential influence of sentiment on real estate markets controversially discussed by scholars of finance, valuation and market efficiency supporters. Therefore, it’s a significant task of current research purview which not only provide an appropriate platform for the contributors but also for active real estate market information seekers. Text mining has gained the widespread attention of real estate market information users which is almost on explosion level. Accessibility of data on such behemoth scale mandates regular and critical analysis of this information for various perspectives’ plausibility. Rich patterns of online social text can be exploited to extract the relevant real estate information effectively. As text mining plays a significant and crucial role in discovery of these insights therefore its challenges and contribution in social media analysis must be explored extensively. In this paper, we provide a brief about the current summary of the modern state of text mining in pre-processing and sentiment for the real estate market analysis. Empha-sis is placed on the resources and learning mechanism available to real estate researchers and practitioners, as well as the major text mining tasks of interest to the community. Thus, the main aim of this chapter is to expound and intellectualize the domains of social media which are accessible on an extraordinary range in the field of text mining real estate for predicting real estate market trends and value.

Vertical integration in the real estate sector: three Swedish case studies

2017 ◽  
Vol 10 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Hans Lind
Keyword(s):  
Real Estate ◽  
Vertical Integration ◽  
Bargaining Power ◽  
Detailed Knowledge ◽  
Extensive Literature ◽  
Production Chain ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector

Purpose The purpose of this paper is to explain why some real estate companies choose to have a vertically integrated structure, instead of specializing in only stage of the production chain. Design/methodology/approach The first stage of the research was an extensive literature review to generate hypotheses. A case study method was then chosen, as more detailed knowledge about the companies were judged to be needed to evaluate the different hypothesis. Documents about the companies were studied and interviews carried out. Findings In the studies cases, there is no support for theories related to vertical integration as a way to monopolize a market and only marginal support for theories that focus on contracting problems related to the so called hold up problem. The most important factors for the companies were that vertical integration gives information and more options that are important in small number bargaining situations. The companies bargaining power increases when they are better informed about, e.g. costs and profits in nearby activities, and when they can use in-house units, if there are problems to find reasonable conditions on the outside market. Research limitations/implications The main limitation is that only three cases were studied. Practical/implications The study can be helpful both to companies that choose to integrate vertically and those that chose not to. There are similar problems related to information and bargaining power that needs to be handled. Originality/value This is the first study that test theories about vertical integration in the real estate sector.

scholarly journals COVID-19 Infects Real Estate Markets: Short and Mid-Run Effects on Housing Prices in Campania Region (Italy)

2020 ◽  
Vol 9 (7) ◽  
pp. 114 ◽  
Author(s):  
Vincenzo Del Giudice ◽  
Pierfrancesco De Paola ◽  
Francesco Paolo Del Giudice
Keyword(s):  
Real Estate ◽  
Housing Prices ◽  
Real Estate Market ◽  
Campania Region ◽  
Real Estate Markets ◽  
The Real ◽  
The Real Estate ◽  
Short Run ◽  
Predator Model ◽  
Real Estate Prices

The COVID-19 (also called “SARS-CoV-2”) pandemic is causing a dramatic reduction in consumption, with a further drop in prices and a decrease in workers’ per capita income. To this will be added an increase in unemployment, which will further depress consumption. The real estate market, as for other productive and commercial sectors, in the short and mid-run, will not tend to move independently from the context of the aforementioned economic variables. The effect of pandemics or health emergencies on housing markets is an unexplored topic in international literature. For this reason, firstly, the few specific studies found are reported and, by analogy, studies on the effects of terrorism attacks and natural disasters on real estate prices are examined too. Subsequently, beginning from the real estate dynamics and economic indicators of the Campania region before the COVID-19 emergency, the current COVID-19 scenario is defined (focusing on unemployment, personal and household income, real estate judicial execution, real estate dynamics). Finally, a real estate pricing model is developed, evaluating the short and mid-run COVID-19 effects on housing prices. To predict possible changes in the mid-run of real estate judicial execution and real estate dynamics, the economic model of Lotka–Volterra (also known as the “prey–predator” model) was applied. Results of the model indicate a housing prices drop of 4.16% in the short-run and 6.49% in the mid-run (late 2020–early 2021).

European emerging real estate markets

2016 ◽  
Vol 34 (1) ◽  
pp. 27-50 ◽  
Author(s):  
Martin Haran ◽  
Michael McCord ◽  
Peadar Davis ◽  
John McCord ◽  
Colm Lauder ◽  
...  
Keyword(s):  
Czech Republic ◽  
Real Estate ◽  
Emerging Markets ◽  
Investment Portfolio ◽  
Real Estate Investment ◽  
The Czech Republic ◽  
Content Type ◽  
Real Estate Markets ◽  
The Real ◽  
The Real Estate

Purpose – The purpose of this paper is to improve the transparency of European emerging real estate market dynamics and performance attributes in the wake of the 2007-2008 global financial crisis (GFC). The paper examines the extent and nature of inter-relationships between three emerging real estate markets namely, the Czech Republic, Hungary and Poland as well as determining the rationale for including emerging real estate markets within a Pan-European investment portfolio. The paper affords a timely update following the reinstatement of lending provision for European emerging real estate investment markets in 2014. Design/methodology/approach – The paper employs lead-lag correlations and Grainger causality to examine inter and intra relationships across three emerging European real estate markets, namely the Czech Republic, Hungary and Poland over the period 2006-2014. Optimal portfolio analysis is undertaken to explore the role of emerging real estate markets within the confines of a multi-asset investment portfolio as well as a Pan-European real estate investment portfolio. Findings – The findings demonstrate the opportunities afforded by the European emerging real estate markets in terms of both performance enhancement and risk diversification. Significantly, the findings highlight the lack of “uniformity” across the European emerging markets in terms of their investment potential, with Grainger causality confirming that the real estate markets in the Czech Republic, Hungary and Poland are not endogenous functions of one-another’s performance. Practical implications – This paper makes a considered contribution to the analytical interpretation of European emerging property market performance across the real estate cycle. The research demonstrates that the real estate markets in the Czech Republic, Hungary and Poland exhibit specific investment characteristics which differentiate them from the more developed real estate markets across Europe. Indeed emerging markets have the propensity to serve as both a risk diversifier as well as performance enhancer within the confines of a pan-European real estate investment portfolio. However, as the research clearly articulates, intricate understanding of the attributes afforded by the different emerging markets as well as the divergence in sectoral dynamics/performance is integral to portfolio allocation strategies. Originality/value – Robust academic research on Europe’s emerging real estate markets has been hampered by deficiencies in data provision. This study makes an innovative and timely contribution to redressing the research vacuum through delineated examination of the performance dynamics of three markets namely, the Czech Republic, Hungary and Poland, across the real estate cycle. The role and function of emerging markets is depicted within the confines of a Pan-European direct real estate investment portfolio at the all property level and in terms of sectoral specific allocations comprising retail, office and industrial. The explicit added value of the paper is the propensity to bench-mark the performance of emerging markets real estate markets on a like-for-like basis with developed real estate markets across Europe facilitating the exploration of the role and function of emerging real estate markets within a Pan-European investment context.

scholarly journals FOR SALE… BUT FOR HOW LONG? A METHODOLOGICAL PROPOSAL FOR ESTIMATING TIME-ON-THE-MARKET

2015 ◽  
Vol 19 (4) ◽  
pp. 309-324 ◽  
Author(s):  
Vanda C. S. MARTINS ◽  
Marlene N. M. FILIPE ◽  
Fernando A. F. FERREIRA ◽  
Marjan S. JALALI ◽  
Nelson J. S. ANTÓNIO
Keyword(s):  
Real Estate ◽  
Evaluation System ◽  
Socioeconomic Development ◽  
Cognitive Mapping ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
Analytic Hierarchy ◽  
The Real Estate ◽  
Time On The Market ◽  
Measurement Framework

Residential real estate assumes crucial importance in a country's socioeconomic development. It is an important field of study, and much work has gone into better understanding the sector and the factors determining sales within it, such as time-on-the-market (TOM). TOM can be influenced by a variety of elements; a fact that in effect raises a lot of issues, because these determinants are often interpreted in an ambiguous or unstructured way. This study aims to bring greater accuracy and structure to our understanding of these factors, by showing that the integrated use of cognitive mapping with the Analytic Hierarchy Process (AHP) can give rise to a conceptually coherent and empirically valid framework to calculate TOM indices in the residential real estate market. Because it takes into account both tangible and intangible characteristics of a house, this measurement framework also boosts strategic planning support and allows for more informed business planning, which we believe can be a real contribution to the development of the real estate market. The practical implications and limitations of this evaluation system are also discussed.

scholarly journals Diversified Price Dynamics in some Sub-Segments of the Housing Market

2015 ◽  
Vol 15 (1) ◽  
pp. 162-173
Author(s):  
Sebastian G. Kokot
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Real Estate Market ◽  
Quality Of Data ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
The Real Estate Market ◽  
Price Movements

Abstract The observation of price movements on the real estate market is an extremely difficult task as we have to face problems belonging to two spheres. The first of them is the specific nature of real estate as marketable objects and of the real estate market itself. The second one is the character and quality of data on real estate transaction prices. In this article the author, based on an empirical study, attempts to prove that even in a single segment of a local real estate market the prices in individual sub-segments can fluctuate with different intensity. The range of price movements can be so vast that it seems pointless to apply a single averaged price index for the whole segment, and usually that is what analysts do.

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