Pre-sale and Real Estate Investment——Evidence from Chinese Real Estate Market
Fen Wei
Abstract
Fen Wei
Abstract
Using the data of real estate market of provinces and major cities,we study the relationship between real estate pre-sale and real estate investment.Having considered and controlled other elements that may impact on real estate investment,we find there is a significantly positive relationship between real estate pre-sale and real estate total investment.It verifies that overconfidence of developers is a significant factor that has an effect on real estate investment.
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Using the data of real estate market of provinces and major cities,we study the relationship between real estate pre-sale and real estate investment.Having considered and controlled other elements that may impact on real estate investment,we find there is a significantly positive relationship between real estate pre-sale and real estate total investment.It verifies that overconfidence of developers is a significant factor that has an effect on real estate investment.
Key concepts: Real estate, Capitalization rate, Real estate investment trust, Investment (military), Cost approach, Business, Corporate Real Estate, Real estate development