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Donner, Herman
Publications (3 of 3) Show all publications
Donner, H. & Kopsch, F. (2018). Housing Tenure and Informational Asymmetries. Journal of Real Estate Research, 40(2), 155-177
Open this publication in new window or tab >>Housing Tenure and Informational Asymmetries
2018 (English)In: Journal of Real Estate Research, ISSN 0896-5803, Vol. 40, no 2, p. 155-177Article in journal (Refereed) Published
Abstract [en]

The paradigm shift of focus from rental apartments to owner-occupied units on the Swedish property market has led to a substantial number of rental apartments being converted to cooperative apartments. Such conversions are typically done at prices below market value. This provides strong financial incentives for tenants involved in such a conversion to use their informational advantage regarding the financial management of a cooperative, compared to less informed neighbors and buyers on the general market. This setting also provides a reliable way of estimating the persistence and effects of such an informational asymmetry through nearly 200,000 apartment transactions in Stockholm, Sweden, during the period of 2005 through mid-2014. We find that insiders take advantage of an informational asymmetry as newly formed cooperatives set monthly fees artificially low to increase the probability of a conversion as well as apartment values. However, market participants seem to discount this informational asymmetry as recently converted apartments sell at lower prices.

Place, publisher, year, edition, pages
AMER REAL ESTATE SOC, 2018
Keywords
informational asymmetries, real estate, housing tenure
National Category
Civil Engineering
Identifiers
urn:nbn:se:kth:diva-233613 (URN)000441295700001 ()2-s2.0-85054573003 (Scopus ID)
Note

QC 20180827

Available from: 2018-08-27 Created: 2018-08-27 Last updated: 2019-03-18Bibliographically approved
Donner, H. (2017). Foreclosures, Returns, and Buyer Intentions. Journal of Real Estate Research, 39(2), 189-213
Open this publication in new window or tab >>Foreclosures, Returns, and Buyer Intentions
2017 (English)In: Journal of Real Estate Research, ISSN 0896-5803, Vol. 39, no 2, p. 189-213Article in journal (Refereed) Published
Abstract [en]

Using data from Stockholm, Sweden, I examine whether foreclosed properties are sold at a discount. This institutional setting differs from the United States and studies of real estate owned properties. The findings show that properties experience an eight times higher turnover subsequent to a foreclosure Compared with the general market, indicating that professional buyers are taking advantage of a discount. That a substantial fraction of buyers are found to have bought more than one foreclosed property provides further support towards such a pattern. Holding period returns prior and subsequent to a foreclosure also supports a price discount.

Place, publisher, year, edition, pages
AMER REAL ESTATE SOC, 2017
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-210944 (URN)000403523500002 ()
Note

QC 20170714

Available from: 2017-07-14 Created: 2017-07-14 Last updated: 2018-04-02Bibliographically approved
Donner, H., Song, H.-S. & Wilhelmsson, M. (2016). Forced sales and their impact on real estate prices. Journal of Housing Economics, 34, 60-68
Open this publication in new window or tab >>Forced sales and their impact on real estate prices
2016 (English)In: Journal of Housing Economics, ISSN 1051-1377, E-ISSN 1096-0791, Vol. 34, p. 60-68Article in journal (Refereed) Published
Abstract [en]

Based on data of sold apartments and single-family houses in Stockholm, Sweden, during the period of 2006 through 2013, we find that forced sales of apartments and single-family houses cause a substantial price discount. The results of a hedonic spatial Durbin model show a negative impact on transaction price of 20.1% for foreclosed apartments and 24.6% for foreclosed single-family houses. Furthermore, the price discount increases when the number of attempted auctions is limited, which is the case for forced apartment sales owing to a lost membership in a housing association (forfeited). In those cases, the discount is as high as 29.1%.

Place, publisher, year, edition, pages
Elsevier, 2016
Keywords
Foreclosure, Housing, Mortgage, Spatial Durbin model
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-195198 (URN)10.1016/j.jhe.2016.08.002 (DOI)000388912100005 ()2-s2.0-84984614250 (Scopus ID)
Note

QC 20161129

Available from: 2016-11-29 Created: 2016-11-02 Last updated: 2018-04-02Bibliographically approved
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