A study of sale price and marketing time for the new housing building Dr. Ming-Yi Huang National Pingtung Institute of Commerce, Taiwan

1.In the past research, used houses are targeted by most of literatures. Therefore, they can’t provide new housing buildings with reasonable explanation. 2.Transaction data of used house is mainly a single product and new housing building is a set of combined product Introduction

New housing building V.S Used house ItemNew housing buildingUsed house Quantity 80 units one unit 20F / 4 units on every floor AgeZeroOver one transaction QualityHomogeneousHeterogeneous Product combination Room2r, 3r, 4r － PriceLow, Middle, High AreaLow, Middle, High Picture

3.There are many differences between a new housing building sold by developer and a used house sold by the real estate brokerage. 4.The study focuses how to sell all product of new housing building in the shortest time and position room combination ratio, price and area? 5.When room combination ratio, price and area deviate from normal distribution, does the distance of deviation influence sales time of a new housing building?

Methodology Data  The new housing building located in Kaohsiung, the second metropolis in Taiwan.  192 samples collected from 2001 to Model  K-mean method of cluster analysis

 Formula of measuring deviation where X βi is the proportion of room I, X αi is the proportion of normal room I  Simultaneous-equation model (1) (2)

List of variables VariableDescription LOCNumber of parks and schools within a radius of 500 m 2 TIME(TM)Marketing time, days PRICE(P)Sales price, USD DEVELOPER Type of developer of a new housing building. Famous developer, DEVELOPER=1, otherwise DEVELOPER=0; Normal DEVELOPER, DEVELOPER=1, otherwise DEVELOPER=0; base on new DEVELOPER. PDISTThe distance of price which deviates from normal housing AREATotal floor area of one unit; m 2 FLATotal floor area of a new housing building; m 2 UTILITYTotal area of public space / Total floor area of a new housing building,% PARKINGParking space / total units of a new housing building,% CYCLEBusiness cycle index FLOORNumber of floor heights ROOMDISTThe distance of room combination ratio which deviates from normal housing SUMTotal sales amount ADISTThe distance of area which deviates from normal housing

Descriptive Statistics (N=192)

Empirical results VariableType Cluster FSig. Cluster ACluster BCluster C Area 2ROOM *** 3ROOM *** 4ROOM *** VariableType Cluster FSig. Cluster ACluster BCluster C Room 2ROOM *** 3ROOM *** 4ROOM *** Results obtained from area (m 2 ) Results obtained from Room (%) Variable Cluster FSig. Cluster ACluster BCluster C Price3,3174,1855, *** Results obtained from Price (USD / m 2 )

Variable 2SLS3SLS Property PriceMarketing TimeProperty PriceMarketing Time Constant.930(.267)***9.025(3.306)***.907(.267)***9.368(3.389)*** LOC.098(.021)-.166(.126).097(.021)***-.156(.130) TIME.158(.045)*** －.160(.045)*** － PRICE － (2.200)* － (2.255)* Famous developer.114(.041)*** －.133(.040)*** － Normal developer.014(.030) －.029(.029) － PDIST －.385(.146)*** －.359(.148)** AREA.003(.001)***.022(.011)**.003(.001)***.024(.011)** FLA －.266(.144)* －.284(.142)** UTILITY.285(.696)13.614(4.361)***.269(.699)13.821(4.472)*** PARKING.259(.131)**-2.444(.458)***.260(.131)**-2.430(.467)*** CYCLE.001(.000).012(.006)**.001(.000).012(.006)** FLOOR.000(.000) － － ROOMDIST － 3.139(.800)*** － 3.276(.810)*** SUM －.519(.000) － -.537(.000) ADIST －.000(.000)* －.000(.000)** Adj R samples192 Results obtained from 2SLS and 3SLS

Conclusion  The relationship of sales time and sales price 1.The influence of sales time on sales price is positive. It means that sales time will increase with higher sales price. 2.The influence of sales price on sales time is negative. It means that sales price will be higher with shorter time on sale.

1.When room combination ratio deviates from normal distribution, it will increase sales time. 2.When price combination ratio deviates from normal distribution, it will increase sales time. 3.When area combination ratio deviates from normal distribution, it will increase sales time.  The deviation of room combination ratio, price and area ratio, price and area

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