Please use this identifier to cite or link to this item: https://doi.org/10.1111/j.1540-6229.2006.00165.x
Title: Price premium and foreclosure risk
Authors: Ong, S.E. 
Neo, P.H. 
Spieler, A.C.
Issue Date: 2006
Source: Ong, S.E., Neo, P.H., Spieler, A.C. (2006). Price premium and foreclosure risk. Real Estate Economics 34 (2) : 211-242. ScholarBank@NUS Repository. https://doi.org/10.1111/j.1540-6229.2006.00165.x
Abstract: Many previous studies identify loan, property, borrower and environmental factors that impact the probability of foreclosure. Implicit in these studies is the assumption that the property was purchased at fair value. We question this assumption based on several empirical findings regarding property value uncertainty. In contrast to previous research, we explicitly quantify the price premium from a hedonic pricing model. Using a comprehensive database of real estate transactions in Singapore during 1989-2000, we document a price premium associated with properties that are subsequently foreclosed based on actual sales transactions. In addition, we find that the premium paid at purchase significantly increases the probability of foreclosure. These results are robust and continue to hold after controlling for other property-specific factors, time-varying macroeconomic conditions, alternative model specifications and definitions of price premium. © 2006 American Real Estate and Urban Economics Association.
Source Title: Real Estate Economics
URI: http://scholarbank.nus.edu.sg/handle/10635/46213
ISSN: 10808620
DOI: 10.1111/j.1540-6229.2006.00165.x
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

5
checked on Dec 5, 2017

WEB OF SCIENCETM
Citations

5
checked on Dec 5, 2017

Page view(s)

68
checked on Dec 11, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.