Abstract
Property developers have increasingly used forward contracts to pre-sell their properties that are under construction in order to enhance their financial viability. This practice is prevalent especially in big cities like Hong Kong in which large-scale housing developments are popular. However, limited research has been conducted to explore the specific risks involved in forward property markets compared to that of spot property markets. This research explored the forward risks embedded in a pre-sale of property and how they affect the pricing mechanism with reference to the forward property market in Hong Kong. Preliminary study on the efficiency of the forward property market has also been conducted which shows that higher volatility is embedded in the market compared to that of the spot market.
| Original language | English |
|---|---|
| Title of host publication | Association of Researchers in Construction Management, ARCOM 2005 - Proceedings of the 21st Annual Conference |
| Pages | 277-286 |
| Number of pages | 10 |
| Volume | 1 |
| Publication status | Published - 1 Dec 2005 |
| Event | 21st Annual Conference on Association of Researchers in Construction Management, ARCOM 2005 - London, United Kingdom Duration: 7 Sept 2005 → 9 Sept 2005 |
Conference
| Conference | 21st Annual Conference on Association of Researchers in Construction Management, ARCOM 2005 |
|---|---|
| Country/Territory | United Kingdom |
| City | London |
| Period | 7/09/05 → 9/09/05 |
Keywords
- Forward property market
- Pre-sale property
- Risks
ASJC Scopus subject areas
- Civil and Structural Engineering
- Building and Construction
