Ke, Qiulin;
Jia, Shijun;
(2022)
Heterogeneous buyers and housing transaction prices: a case study of Guangzhou, China.
Journal of Housing and the Built Environment
10.1007/s10901-022-09974-w.
(In press).
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Abstract
We investigate whether and the extent to which buyer’s characteristics affect housing transaction prices. Using the transaction data of existing apartments from 2014 to 2017 in Guangzhou, China, our results show that buyer’s locality, motivation and financial ability affect the transaction prices. Non-local buyers pay a premium. First-time buyers gain a discount. Experienced repeat buyers for upgrading pay a premium. We also find that buyer’s financial ability affects purchasing power and transaction prices. The buyers paying the acquisition with mortgage gain a higher discount or pay a lower premium than their counterparts paying in cash. Internet use itself won’t affect transaction price. When it is combined with buyer’s other characteristics, the buyers using the internet to obtain the property information have an information advantage over the ones using the traditional method and gain a higher discount or pay a lower premium than their counterparts using the traditional method, especially for the non-local. This finding is important for market participants and regulators to improve market efficiency and transparency through improving the accuracy of the information disclosed on the Internet.
| Type: | Article |
|---|---|
| Title: | Heterogeneous buyers and housing transaction prices: a case study of Guangzhou, China |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s10901-022-09974-w |
| Publisher version: | https://doi.org/10.1007/s10901-022-09974-w |
| Language: | English |
| Additional information: | Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
| Keywords: | house buyer’s characteristics, transaction price, asymmetric information, search cost, China |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett School of Planning UCL > Provost and Vice Provost Offices > UCL BEAMS UCL |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10154652 |
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