The seller's price concession reflects the existence of asymmetric information in the second-hand housing market, and it is beneficial to study the influence of the broker's commission incentive ...source on the information transmission in the process of second-hand housing transactions. This study examined 310,332 transactions in 17 cities, using the spatio-temporal autoregressive model. Results mainly revealed price concession under the both-sides broker commission arrangement was 1.64% significantly lower than that under the buyer-side commission. The broker commission incentive has a moderating effect on the transmission of market information during transactions, whereas the both-sides commission leads to an increase in the effect of objective market conditions and reduces the difference of effects of individual factors on price concessions. An exogenous demand shock may lead to a change in the relationship between brokers' actions and sellers' pricing strategies. The implications will serve to improve the norms of and transparency in the second-hand housing transaction market, and resolve the disparity between the broker agent mode and commission incentive scheme.
•Both-sides commission of dual agent mode will decrease the seller's price concession.•Commission incentive has a moderating effect on information transmission during housing transaction.•Broker's incentive bias is more obvious when bargaining power is more unequal between the seller and the buyer.•Exogenous demand shock leads to a change in the relationship between brokers' actions and sellers' pricing strategies.•The disparity between the agent mode and commission incentive scheme should be resolved.
•Hedonic pricing model reveals a 11.94 % price discount of GRB at resale stage in Shenzhen.•As the price rises, the price discount expands with a downward trend (from −5.2% to −17.9%).•The GRBs sold ...in spring and winter tend to have a smaller price discount.•Both building age and the distance to CBD offset the value loss resulting from green label.•The GRBs with more rooms and parlors tend to have a wider price discount.
China has witnessed a rapid growth of green building in the past few years. Green building development in residential sector is relatively slow. This paper provides nuanced evidence for explaining the slow growth of green residential building (GRB) based on a case study of the market in Shenzhen. This paper uses hedonic pricing models with a unique transaction dataset to find out an average price discount of 11.94% for GRB in second-hand housing market. Such price discount of GRB grows as housing price rises, insinuating that expensive housing obtains greater economic loss from green label. Our findings drawn from employing heterogeneity analysis show that the GRBs being sold in spring and winter tend to have a smaller price discount than those sold in summer and autumn. The GRBs with more rooms and parlors, however, tend to have a greater price discount in second-hand housing market. Our findings confirm that both building age and distance to central business district (CBD) offset the value loss resulting from green label. This study conveys a negative message to the economic return of GRB in China’s second-hand housing market. Our findings advocate strong policy incentives to promote demand for GRB and reduce pertinent market barriers.
The accurate appraisal of second-hand housing prices plays an important role in second-hand housing transactions, mortgages and risk assessment. Machine learning technology, gradually applied to ...finance and economics, can also be used to upgrade the traditional appraisal methods of second-hand housing. A large number of appraisal indicators and price data on second-hand housing in Beijing, Shanghai, Guangzhou and Shenzhen, four first-tier cities in China, can be obtained by using crawler technology. Then, the geographical location information of second-hand housing can be visualized by GIS technology, and the descriptive text of second-hand housing can be processed by natural language processing. Finally, combined with other numerical and classification indicators, the second-hand housing appraisal model based on a two-tier stacking framework is constructed by using random forest, adaptive boosting, gradient boosting decision tree, light gradient boosting machine and extreme gradient boosting as base models and back propagation neural network as the meta-model. The result of model training shows that the machine learning models improve the accuracy significantly compared to linear multiple regression and spatial econometric models, and the performance of the stacking model is better than that of standalone machine learning models.
The objective of this study is to show different recent trends (2001-2009) in second-hand housing prices in Spain and in different neighbourhoods in Alcala de Henares and León, both of which are ...cities with very diverse economic and demographic characteristics. The first is a city in the metropolitan area of Madrid, with high land prices. The increasing demand for housing in Alcala de Henares is a good alternative for households, in view of high prices in Madrid. The second is Léon, the capital of the province of León, which is undergoing a depopulation process. We will demonstrate that house price dynamics is a local phenomenon and national or regional level data conceal interesting differences within cities (districts and neighbourhoods). The latest rise and decline in housing prices is clearly visible on the outskirts and sometimes non-existent in the town centre area.
The objective of this study is to show different recent trends (20012009) in second hand housing prices in Spain and in different neighbourhoods in Alcalá de Henares and León, both of which are ...cities with very diverse economic and demographic characteristics. The first is a city in the metropolitan area of Madrid, with high land prices. The increasing demand for housing in Alcalá de Henares is a good alternative for households, in view of high prices in Madrid. The second is Léon, the capital of the province of León, which is undergoing a depopulation process. We will demonstrate that house price dynamics is a local phenomenon and national or regional level data conceal interesting differences within cities (districts and neighbourhoods). The latest rise and decline in housing prices is clearly visible on the outskirts and sometimes non existent in the town centre area.
In Japan, the second-hand housing market is very small and the liquidity of owner-occupied housing is quite low. Many Japanese bequeath housing assets to their heirs, with such assets playing a ...crucial role as inheritance properties. However, whether this behavior is based on parents' willingness or the effect of the existing housing market in Japan is unclear. While previous studies have discussed the degree to which owner-occupied housing influences Japanese bequest motives. This study contributes to the literature by analyzing the impact of the illiquidity of owner-occupied housing. The results of our econometric analysis shows that the liquidity of owner-occupied housing is related with Japanese bequest motives. This finding on Japanese inheritance behavior thus provides a new insight into the "liquidity" of existing housing in the market.
This chapter presents an overview of the housing and housing finance markets in Japan, the causes and consequences of the international propagation of the 2008 U.S. financial crisis to the Japanese ...market, and suggests directions for future policy reforms. In this chapter, the authors compare the differences between the consequences of the 2008 U.S. subprime loan problem and the bursting of Japan's asset bubble in the early 1990s, for the overall economy, with a focus on the housing and housing finance markets in Japan. The Japanese housing bubble in the early 1990s and the current financial crisis have had similar macroeconomic consequences, involving a sharp decline in housing prices and housing starts increased housing foreclosures, and rising unemployment. Even as Japan reels from the current economic crisis, the potential benefits of market‐oriented reforms for real estate securitization, housing finance system, private and public rental housing, and the second hand housing market in Japan are evident.
PDF
