What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach

Leung, Charles Ka Yui; Tse, Chung-Yi; Huang, Daisy J

What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach

Leung, Charles Ka Yui; Tse, Chung-Yi; Huang, Daisy J

Institute of Social and Economic Research Discussion Papers, 2017, 990, 1-106

アクセス数:238件（2025-05-14 04:50 集計）

固定URL: https://hdl.handle.net/11094/60305

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タイトル	What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach
著者	著者名 Leung, Charles Ka Yui
	著者名 Tse, Chung-Yi
	著者名 Huang, Daisy J
キーワード等	housing rental yield
	turnover rate
	bootstrap
	leave-one-out cross validation (LOOCV)
	matching estimator
	3 stages least squares (3SLS)
抄録	We build an on-the-house-search model and show analytically that the rent-to-price ratio (or rental yield) and turnover rate, which are frequently used metrics for the housing market, are jointly determined in equilibrium. We therefore adopt a simultaneous equation approach on matched sale-rental pairs in our empirical investigation, as a housing unit cannot be owner-occupied and renter-occupied at the same time. Our empirical results confirm a higher turnover rate is associated with a lower rent-to-price ratio, as predicted by the model. Furthermore, our results suggest a form of“dichotomy”in the empirical determinants of rental yield and turnover at the real-estate-development (RED) level: the demographic structure, and past return performance affect its turnover rate, while popularity, human capital environment, mortgage burden, and long run rent growth determine the rental yield. No evidence of “thick market effect” is found. The robustness of our results are established through a series of tests. In addition to these findings, our tractable search-theoretic model, a ranking of more than 130 RED in Hong Kong based on the popularity index we construct, and the estimated brand-premium for different major real estate developers may also carry independent research and practical interests.
出版者	The Institute of Social and Economic Research, Osaka University
収録物名	Institute of Social and Economic Research Discussion Papers
巻(号)	990
ページ	1-106
刊行年月	2017-02
言語	英語
ハンドルURL	https://hdl.handle.net/11094/60305
関連情報 (references)	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2017/DP0990.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Institute of Social and Economic Research Discussion Papers

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2017, 990, p. 1-106
DC.title	What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach
DC.creator	Leung, Charles Ka Yui
	Tse, Chung-Yi
	Huang, Daisy J
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2017-02
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2017/DP0990.pdf
DC.subject	housing rental yield
	turnover rate
	bootstrap
	leave-one-out cross validation (LOOCV)
	matching estimator
	3 stages least squares (3SLS)
DCTERMS.abstract	We build an on-the-house-search model and show analytically that the rent-to-price ratio (or rental yield) and turnover rate, which are frequently used metrics for the housing market, are jointly determined in equilibrium. We therefore adopt a simultaneous equation approach on matched sale-rental pairs in our empirical investigation, as a housing unit cannot be owner-occupied and renter-occupied at the same time. Our empirical results confirm a higher turnover rate is associated with a lower rent-to-price ratio, as predicted by the model. Furthermore, our results suggest a form of“dichotomy”in the empirical determinants of rental yield and turnover at the real-estate-development (RED) level: the demographic structure, and past return performance affect its turnover rate, while popularity, human capital environment, mortgage burden, and long run rent growth determine the rental yield. No evidence of “thick market effect” is found. The robustness of our results are established through a series of tests. In addition to these findings, our tractable search-theoretic model, a ranking of more than 130 RED in Hong Kong based on the popularity index we construct, and the estimated brand-premium for different major real estate developers may also carry independent research and practical interests.
DC.format	60305
citation_title	What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach
citation_author	Leung, Charles Ka Yui
	Tse, Chung-Yi
	Huang, Daisy J
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	英語
citation_date	2017-02
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	990
citation_firstpage	1
citation_lastpage	106
citation_public_url	https://hdl.handle.net/11094/60305
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2017/DP0990.pdf

What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach

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