The impact of pricing strategies on time-on-market under various economic conditions

Chi Man Hui; Ka Hung Yu

doi:10.3846/1648715X.2011.585185

The impact of pricing strategies on time-on-market under various economic conditions

Research output: Journal article publication › Journal article › Academic research › peer-review

Abstract

This study examines how price adjustments in a flat's marketing phase, along with various housing attributes, influence its time-on-market (TOM). A Cox survival model is used for the analysis of two separate periods, one of economic downturns (2003) and one of economic recovery (2004-2006), in Hong Kong. Factors such as price adjustments, sale price, numerous housing attributes, general property price trend, and changes in unemployment rate have significant impacts on TOM, with their respective impacts changing over time. Specifically, the effectiveness of raising list prices before transactions, in optimizing sellers' returns and TOM, depends on economic conditions as well as on the market expectations regarding future property prices. Directions on future studies are then discussed.

Original language	English
Pages (from-to)	56-70
Number of pages	15
Journal	International Journal of Strategic Property Management
Volume	16
Issue number	1
DOIs	https://doi.org/10.3846/1648715X.2011.585185
Publication status	Published - 6 Sept 2012

Keywords

Economic conditions
Hong Kong
Residential properties
Searching cost
Time-on-market (TOM)

ASJC Scopus subject areas

Strategy and Management

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

More information

10.3846/1648715X.2011.585185

Cite this

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AB - This study examines how price adjustments in a flat's marketing phase, along with various housing attributes, influence its time-on-market (TOM). A Cox survival model is used for the analysis of two separate periods, one of economic downturns (2003) and one of economic recovery (2004-2006), in Hong Kong. Factors such as price adjustments, sale price, numerous housing attributes, general property price trend, and changes in unemployment rate have significant impacts on TOM, with their respective impacts changing over time. Specifically, the effectiveness of raising list prices before transactions, in optimizing sellers' returns and TOM, depends on economic conditions as well as on the market expectations regarding future property prices. Directions on future studies are then discussed.

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The impact of pricing strategies on time-on-market under various economic conditions

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

More information

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