Presale Contract and its Embedded Default and Abandonment Options

Journal of Real Estate Finance and Economics

Volumn 44, Issue 1-2, 2012, Pages 116-152

  Chan, Su Han ^a   Wang, Ko ^a   Yang, Jing ^b  

^a CITY UNIVERSITY OF NEW YORK   (United States)

^b CALIFORNIA STATE UNIVERSITY   (United States)

Author keywords

Development decision; Property presale; Real option

Indexed keywords

EID: 84855566254     PISSN: 08955638     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11146-010-9289-5     Document Type: Article

References (17)

1. Buttimer, R. J., Clark, S. P., & Ott, S. H. (2008). Land development: Risk, return and risk management. Journal of Real Estate Finance and Economics, 36, 81-102.
2. Chan, S. H., Fang, F., & Yang, J. (2008). Presales, financing constraints, and developers' production decisions. Journal of Real Estate Research, 30(3), 345-375.
3. Chang, C. O., & Ward, C. W. (1993). Forward pricing and the housing market: The pre-sales housing system in Taiwan. Journal of Property Research, 10, 217-227.
4. Childs, P., Ott, S., & Riddiough, T. (2002). Optimal valuation of claims on noisy real assets: Theory and an application. Real Estate Economics, 30, 415-443.
5. Edelstein, R., Liu, P., & Wu, F. (2008). Forward real estate markets and hedging: A theoretical approach. University of California at Berkeley Working Paper.
6. Geltner, D., & Ling, D. C. (2007). Indices for investment benchmarking and return performance analysis in private real estate. International Real Estate Review, 10(1), 93-118.
7. Grenadier, S. R. (1995). Valuing lease contracts: A real-option approach. Journal of Financial Economics, 38, 297-331.
8. Grenadier, S. R. (1996). The strategic exercise of options: Development cascades and overbuilding in real estate. Journal of Finance, 51, 1653-1679.
9. Hua, C. C., Chang, C. O., & Hsieh, C. (2001). The price-volume relationships between the existing and the pre-sales housing markets in Taiwan. International Real Estate Review, 4(1), 80-94.
10. Lai, R. N., Wang, K., & Yang, J. (2007). Stickiness of rental rates and developers' option exercise strategies. Journal of Real Estate Finance and Economics, 34(1), 159-188.
11. Lai, R. N., Wang, K., & Zhou, Y. (2004). Sale before completion of development: Pricing and strategy. Real Estate Economics, 32(2), 329-357.
12. Leung, B., Hui, E., & Seabrooke, B. (2007). Asymmetric information in the Hong Kong forward property market. International Journal of Strategic Property Management, 11, 91-106.
13. Wang, K., Young, L., & Zhou, Y. (2002). Non-discriminating foreclosure and voluntary liquidating costs. Review of Financial Studies, 15(3), 959-985.
14. Wang, K., & Zhou, Y. (2000). Overbuilding: A game-theoretic approach. Real Estate Economics, 28(3), 493-522.
15. Wang, K., & Zhou, Y. (2006). Equilibrium real options exercise strategies with multiple players: The case of real estate markets. Real Estate Economics, 34(1), 1-49.
16. Wang, K., Zhou, Y., Chan, S. H., & Chau, K. W. (2000). Over-confidence and cycles in real estate markets: Cases in Hong Kong and Asia. International Real Estate Review, 3(1), 93-108.
17. Wong, S. K., Yiu, C. Y., Tse, M. K. S., & Chau, K. W. (2006). Do the forward sales of real estate stabilize spot prices? Journal of Real Estate Finance and Economics, 32, 289-304.