A0445
Title: Good things come in pairs: Block trade in housing market
Authors: Chi Ho Tang - Hong Kong Shue Yan University (Hong Kong) [presenting]
Ka Yui Leung - City University of Hong Kong (Hong Kong)
Chung Yi Tse - University of Leicester (United Kingdom)
Abstract: While owners of single-family homes can extend and redevelop their properties to satisfy their increased demand for space, condominium owners do not have the same flexibility. When the characteristics of the housing stock stay unchanged amidst a changing income distribution, some households may choose to get around the mismatch between the demand for and supply of space in a given location by buying multiple units in one trade, which is referred to as block trading. An overlapping generation model is developed to study this kind of block trading in the housing market, and the model's implications are tested with microdata from Hong Kong.
