What drives the property price-trading volume correlation? Evidence from a commercial real estate market

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

20 Scopus Citations
View graph of relations

Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)241-255
Journal / PublicationJournal of Real Estate Finance and Economics
Volume31
Issue number2
Publication statusPublished - Sep 2005
Externally publishedYes

Abstract

The significant price-trading volume correlation found in the residential property market presents a challenge to the rational expectation hypothesis. Existing theories account for this fact with either capital market imperfection (down-payment effect or loss-aversion consideration) or imperfect information (search theoretic models). This paper employs data from a commercial real estate market, which face a different degree of severity of capital market constraint than the residential market, and thus provide an indirect but effective test for alternative theories. Policy implications are also discussed. © 2005 Springer Science + Business Media, Inc.

Research Area(s)

  • Capital market imperfection, Different degree of severity, Housing price, Search, Trading volume