A0440
Title: Can we have the cake and eat it too? The case for the top-floor units as a status good and an investment
Authors: Chi Ho Tang - Hong Kong Shue Yan University (Hong Kong) [presenting]
Ka Yui Leung - City University of Hong Kong (Hong Kong)
Abstract: Located at the top of condominium buildings, Top Floor Units (TFU) offer superior views and privacy through the accessible roofs. The purpose is to study this status good empirically. It is found that (1) TFU interacts with the macroeconomy differently from the ordinary units, (2) TFU should not be included in the portfolio once the liquidity factor is considered, (3) the holding period-annualized return tradeoff of TFU differ significantly from the ordinary units, suggesting alternative investment strategies being used in TFU, and (4) the liquidity of the TFU segment is less stable than the ordinary units, and may therefore discourage short-term speculators.
