Price Volatility of Commercial and Residential Property

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

22 Scopus Citations
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Original languageEnglish
Pages (from-to)25-36
Journal / PublicationJournal of Real Estate Finance and Economics
Issue number1
Publication statusPublished - 2000
Externally publishedYes


This article studies the relative volatility of commercial and residential property prices. Empirical evidence of commercial property prices being more volatile than the prices of residential property is presented. Models are built following that of Lucas. Theoretical statements are derived to show the exact conditions under which the observations arise. The cases of fixed supply and flexible supply are considered separately.