Leung, B Y P and Hui, E C M (2005) Pricing of pre-sale properties with construction uncertainties. In: Khosrowshahi, F (ed.) Proceedings of 21st Annual ARCOM Conference, 7-9 September 2005, London, UK.
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.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | forward property market; pre-sale property; risks |
| Index terms: | Hong Kong, efficiency, financial viability, housing development, property market, pricing |
| Subjects: | construction type, economic analysis, business management, real estate economics, Geography, performance management |
| Topics: | Construction Technology, Urban Studies, Business Strategy, Quality Management, Geographical Context |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here