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Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market
This paper examines the relationship between property return and seller behavior and aims to test the disposition effect in China’s real estate market. Using transaction data in Beijing, we find that loss properties have a lower sell propensity relative to gain properties, confirming the existence o...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
MDPI
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9854462/ https://www.ncbi.nlm.nih.gov/pubmed/36661627 http://dx.doi.org/10.3390/bs13010055 |
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author | Li, Hongfei Liang, Limin Sun, Chengjiu |
author_facet | Li, Hongfei Liang, Limin Sun, Chengjiu |
author_sort | Li, Hongfei |
collection | PubMed |
description | This paper examines the relationship between property return and seller behavior and aims to test the disposition effect in China’s real estate market. Using transaction data in Beijing, we find that loss properties have a lower sell propensity relative to gain properties, confirming the existence of the disposition effect. We also find that the disposition effect is more pronounced in samples with shorter holding periods. Sellers with financial constraints and popular projects are more likely to show the disposition effect. Furthermore, we find that sellers exhibit loss aversion; specifically, sellers with loss properties are likely to set a higher listing price, which provides indirect evidence for the disposition effect. |
format | Online Article Text |
id | pubmed-9854462 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | MDPI |
record_format | MEDLINE/PubMed |
spelling | pubmed-98544622023-01-21 Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market Li, Hongfei Liang, Limin Sun, Chengjiu Behav Sci (Basel) Article This paper examines the relationship between property return and seller behavior and aims to test the disposition effect in China’s real estate market. Using transaction data in Beijing, we find that loss properties have a lower sell propensity relative to gain properties, confirming the existence of the disposition effect. We also find that the disposition effect is more pronounced in samples with shorter holding periods. Sellers with financial constraints and popular projects are more likely to show the disposition effect. Furthermore, we find that sellers exhibit loss aversion; specifically, sellers with loss properties are likely to set a higher listing price, which provides indirect evidence for the disposition effect. MDPI 2023-01-06 /pmc/articles/PMC9854462/ /pubmed/36661627 http://dx.doi.org/10.3390/bs13010055 Text en © 2023 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). |
spellingShingle | Article Li, Hongfei Liang, Limin Sun, Chengjiu Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title | Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title_full | Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title_fullStr | Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title_full_unstemmed | Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title_short | Does Property Return Affect Seller Behavior? An Empirical Study of China’s Real Estate Market |
title_sort | does property return affect seller behavior? an empirical study of china’s real estate market |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9854462/ https://www.ncbi.nlm.nih.gov/pubmed/36661627 http://dx.doi.org/10.3390/bs13010055 |
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