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Risk transfer of presale properties and the construction of a forward property price index

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

Abstract

Despite the increasing use of forward contracts to pre-sell uncompleted properties, limited research has been conducted to explore the additional risks transferred from developers to buyers in presales of uncompleted properties. This research explored the risk-transfer mechanism specific to the forward property market and how the risks affect the construction of a forward property price index compared to that of spot property price indices. The proposed model using the repeat sales method for constructing the forward property price index is found to be more efficient over the other models in reflecting the general price change of the forward property market. © 2007 Taylor & Francis Group, LLC. All rights reserved.
Original languageEnglish
Pages (from-to)194-212
JournalPacific Rim Property Research Journal
Volume13
Issue number2
DOIs
Publication statusPublished - 2007
Externally publishedYes

Research Keywords

  • Forward property market
  • Presale property
  • Risks

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