Abstract
Situated atop condominium buildings, ‘top floor units’ (TFU) offer unparalleled views and privacy, courtesy of accessible roofs. This paper empirically examines this status symbol and finds that: (1) TFUs interact with the macroeconomy differently from ordinary units, (2) when considering the liquidity factor, TFUs should not be included in the portfolio, (3) the trade-off between holding period and annualized return for TFUs significantly differs from ordinary units, suggesting alternative investment strategies are employed for TFUs, and (4) the liquidity of the TFU segment is less stable than ordinary units, potentially deterring short-term speculators. © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2025.
| Original language | English |
|---|---|
| Journal | The Journal of Real Estate Finance and Economics |
| Online published | 19 Jan 2025 |
| DOIs | |
| Publication status | Online published - 19 Jan 2025 |
Funding
The work described in this paper is supported by the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No.: UGC/FDS15/B01/18). The usual disclaimer applies.
Research Keywords
- Markov switching model
- Peer group effect on consumption
- Speculation
- Submarkets
- Top floor units
RGC Funding Information
- RGC-funded
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