Summary

After having finishing my first paper "the effect of primary school quality on housing prices in Amsterdam", I am currently working on a project from Land Registry (Kadaster) under the guidance of Prof. Marc Francke. It is mainly about the relationship between Time-to-close (TTC), Time-on-the-market (TOM) and transaction price of property in the Dutch real estate market. When the buyer and the seller sign a contract for exchanging a house, the two parties negotiate the transaction price and the date to delivery. TTC is the time period from the date of signing the contract to the date of the underlying property being legally transferred. We analyze the research question from the perspective of the participants’ characteristics (patient/impatient), by constructing IVs from the recent past transaction information to solve the endogeneity problem. We find that TTC has a positive effect on transaction price while TOM shows negative effect as we expect, and these effects are enhanced by applying IVs. Furthermore, this effect varies largely during the housing market cycle (recessions / expansions), etc. Another project I am about to working on is about the real estate illiquidity premium