Real Estate Market

Characteristics

Physical

Economics

High Transaction Costs

illiquid

Supply Inelastic

Long Transaciton Time

intervention of gov

Irrational participants

Imperfect Information

Heterogeneous

Costs in property management

Indivisible

Immobile

Durable

Real Estate as Investment

Capital Growth

Hedge against inflation

High Financial leverage

Estate building

Tax Benefits

Singapore no capital gains tax

REITs

Characteristics

Decentralised market

Data Inefficiency

No real time data

Imperfect market

Supply

GLS

Change plot ratio

Private land sales

Demand

Political stability

Government Policies

Economic growth

Interst rate

Social factor