Forecasting prices of presale houses: A real option approcach

Ming Cheng Wu, I. Cheng Lin, Yi Ting Huang, Chang-Rong

研究成果: Article

1 引文 (Scopus)

摘要

We are currently witnessing a boom in the real estate industry worldwide, and presale investing (or “Buying Off Plan”, as it is known in Europe) is increasingly popular. This paper conducts a pricing model based on the real option method to assess presale houses. This paper takes into account the ded uctible margins (option premium) and the tax factor to capture the most important characteristics of real-world presale system in house trading markets. This paper finally proposes a closed-form solution for the price of presale house. Simulation results and sensitivity analyses are also examined. The proposed model would help investors to predict and determine the presale house investment.

原文English
頁(從 - 到)143-158
頁數16
期刊Romanian Journal of Economic Forecasting
18
發行號1
出版狀態Published - 2015 一月 1

指紋

Price forecasting
Investors
Real estate
Real options
World system
Tax
Premium
Closed-form solution
Margin
Simulation
Investing
Factors
Industry

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

引用此文

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Forecasting prices of presale houses : A real option approcach. / Wu, Ming Cheng; Lin, I. Cheng; Huang, Yi Ting; Chang-Rong.

於: Romanian Journal of Economic Forecasting, 卷 18, 編號 1, 01.01.2015, p. 143-158.

研究成果: Article

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