Pricing of pre-sale properties with construction uncertainties

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

1 Citation (Scopus)

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 languageEnglish
Title of host publicationAssociation of Researchers in Construction Management, ARCOM 2005 - Proceedings of the 21st Annual Conference
Pages277-286
Number of pages10
Volume1
Publication statusPublished - 1 Dec 2005
Event21st Annual Conference on Association of Researchers in Construction Management, ARCOM 2005 - London, United Kingdom
Duration: 7 Sep 20059 Sep 2005

Conference

Conference21st Annual Conference on Association of Researchers in Construction Management, ARCOM 2005
Country/TerritoryUnited Kingdom
CityLondon
Period7/09/059/09/05

Keywords

  • Forward property market
  • Pre-sale property
  • Risks

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction

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