Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/164571
Title: SPECULATORS AND CERTAINTY EFFECT: EVIDENCEFROM THE REDEVELOPMENT MARKET
Authors: CHIA LIU EE
Keywords: redevelopment, speculation, housing markets, multi-family homes, prospect theory, certainty effect
Issue Date: 14-Aug-2019
Citation: CHIA LIU EE (2019-08-14). SPECULATORS AND CERTAINTY EFFECT: EVIDENCEFROM THE REDEVELOPMENT MARKET. ScholarBank@NUS Repository.
Abstract: Data from redevelopment activities in Singapore shows that property speculations are associated with the value of land for future redevelopment. Properties with high redevelopment potential 1) are transacted at a higher price of 4.4% to 15.6% in the resale market; 2) are more expensive when uncertainties associated with redevelopment event are lower, and 3) are priced at a premium of 6.2% to 11.1% after information about redevelopment potential is dispersed. Our study also documents the existence of prospect theory in property speculations, in particular certainty effect that explains speculators’ behavior of selling prematurely before redevelopment sale. While loss aversion behavior has been extensively studied, this paper provides a leap on owners’ behaviors in the domain of positive gains, where property sellers have higher preference of cashing-in sure and smaller gains, over waiting for probable and larger gains.
URI: https://scholarbank.nus.edu.sg/handle/10635/164571
Appears in Collections:Master's Theses (Open)

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
ChiaLE.pdf1.36 MBAdobe PDF

OPEN

NoneView/Download

Page view(s)

19
checked on Apr 2, 2020

Download(s)

1
checked on Apr 2, 2020

Google ScholarTM

Check


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