Wealth transfer in forward property markets

Abstract

The principal‐agent problem arising from asymmetric information in presales of uncompleted properties in forward property markets has been well‐recognized. Since buyers are not able to inspect the uncompleted properties when they make the purchases, developers may hide information about the negative aspects of the properties or over‐state the quality in order to generate an extra profit in the presales on top of the equilibrium value as if the properties were sold in the spot market. In this regard, the study adapted a forward‐spot property repeat sales pricing model to explore the pricing of presale properties compared to that of spot properties in which the principal‐agent problem does not exist. The findings suggest that developers were able to impose a wealth transfer from the buyers in pricing presale properties taking the advantage of asymmetric information embedded in forward property markets.

SANTRUKA

Nekilnojamojo turto (NT) agento problema, kuria sukelia neproporcinga informacija iš anksto parduodant nebaigta statyti nekilnojamaji turta išankstiniu NT sandoriu rinkose (angl. forward property markets), yra gerai žinoma. Kadangi pirkejai negali apžiūreti nebaigto statyti nekilnojamojo turto, vystytojai gali nuslepti informacija apie neigiamus nekilnojamojo turto dalykus arba perdeti kokybe, tuo siekdami pasipelnyti iš išankstinio pardavimo papildomai prie likutines vertes, lyg nekilnojamasis turtas būtu parduodamas neatideliotinu atsiskaitymu rinkoje (angl. spot market). Šiuo atžvilgiu tyrime taikytas išankstiniais sandoriais ir neatideliotinais atsiskaitymais pagristo kartotinio NT pardavimo kainodaros modelis, siekiant iš anksto parduodamo NT kainodara išnagrineti lyginant su neatideliotinu atsiskaitymu rinkoje parduodamu NT, kai agento problemos nera. Išvados rodo, kad vystytojai turejo galimybe pirkejams primesti turto perskirstyma paimdami iš ju daugiau, kai iš anksto parduodama nekilnojamaji turta ikainodavo naudodamiesi neproporcinga informacija, būdinga išankstiniu NT sandoriu rinkoms.

Keywords:

• Forward property market
• Presale properties
• Asymmetric information
• Wealth transfer
• repeat sales method