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Please note that all times are shown in the time zone of the conference. The current conference time is: 13th Aug 2022, 10:07:26am IST
Session Chair: Xudong An, Federal Reserve Bank of Philadelphia, United States of America
Room in the Arts Building, Trinity College Dublin.
Exact details to be confirmed by May 31
Institutional Investment and Residential Rental Market Dynamics
1Central Bank Of Ireland, Ireland; 2Trinity College Dublin;
The impact of institutional investment on residential rental markets is a topic that draws much attention, but for which little evidence exists. This paper aims to remedy this by analysing the direct and indirect impact of institutional investment in existing housing stock at the property level, using Ireland as a case study. Ireland is particularly suited, as large portfolios of individual homes and multi-family developments becoming available for purchase due to the Global Financial Crisis (GFC) enticed institutional investor into Ireland's rental market for the first time. Using new staggered difference-in-difference methods on an exactly matched sample of treatment and control properties in close proximity, the study finds that institutional investors do increase rents in excess of other landlords with comparable properties following purchase. Provisional evidence also suggests that they may influence the rent setting behaviour of other landlords within 200 metres of their property as well.
Cross-market Spillovers of Real Estate Speculation
Hu, Rong1; Wan, Xinwei2; Xu, Ke3
1the Chinese Univeristy of Hong Kong; 2the University of Cambridge; 3the University of Hong Kong;
This study examines the externality of anti-speculation policies and its impact on property market volatility. Employing a rich dataset on property transactions in Hong Kong from 1991 to 2020, we find that, given regulations for flippers in the presale residential property market only, the flippers will flow into the spot residential property market. After implementing the presale-specific anti-speculation policies in 1994, the percentage of flipping transactions in the spot residential property market increased by 6.9 percentage points more than that in the presale residential property market. With buyers’ fixed effects, we find that existing flippers in the presale residential property market are 72 percentage points more likely to speculate in the spot residential property market thereafter. After the anti-speculation policies extend to the entire residential property market in 2010, there is no evidence demonstrating that the cross-market flipper spillover continues to the non-domestic property market. Also, in the spot residential property market that flippers spill over into after 1994, the price volatility decreased by 1.5 percentage points, implying the price stabilizing effect of flippers. These findings shed lights on the importance of considering cross-market spillovers in regulating speculations in real estate markets.
Search frictions in rental markets
Fan, Ying1; Chen, Ming1; Yang, Zan2
1The Hong Kong Polytechnic University; 2Tsinghua University;
In this paper, we consider a housing market subject to objective and psychological search frictions. Using rental data from a leading real estate brokerage company during 2016 and 2018, we find a normal distribution of objective frictions while a bimodal distribution of subjective frictions, which is originated from divergent search strategies. The greater extent of search frictions, the higher likelihood of overpay and deviation between actual choice and stated preference, which is independent of the unobserved heterogeneity, bilateral bargaining power, and local market tightness. From an aggregate perspective, objective and psychological search frictions result in residual dispersion and asymmetry of rentals.