The Impact of Information Asymmetry on Real Housing Price

in Foreign journals(other), 國外期刊(其他)
標題The Impact of Information Asymmetry on Real Housing Price
AuthorsHenry H.Y. Hsieh, 謝惠元, & LIN 林玉美
期刊The Ymc Management Review
出版日期2015 / 12

The vacancies of residential construction increased from 480,000 units in 1980 to 1,550,000 units in 2010 in Taiwan, implying oversupply of residential house units. Although high vacancies, average unit price of residential unit increased from NT$ 96,600/ping in 1999 to NT$ 165,600/ping in 2013, indicating the malfunction of market mechanism. This research based on the Structure-Conduct-Performance (S-C-P) model examines those factors influencing residential construction industry. A sample of 280 observations in the 20 cities and counties in Taiwan during 2000-2013 was tested by Pooled Cross-Sectional Time-Series regression model. We use Two Stage Least Squares (2SLS) to analyze the impact of the transparency of vacancies and real housing price on the behavior and performance of the construction industry in Taiwan. We found that event such as Luxury Tax caused negative impact on construction industry, whereas the revelation of the housing price sold resulted in the increase of the real average housing price. The transparency of the housing market causes exaggeration of price, indicating irrational exuberance. Housing prices negatively influenced vacancies indicating irrationality of this market. Although high vacancies the approvals increased consistently, indicating there were demands of quality house unit, speculation, and investment. The residential approvals caused the increase of residential completions resulting the increase of vacancies. The vacancy and real housing price also influenced the approvals verifying the Industrial Organization model (SCP). We suggest that the demolishing and renovation of structural vacancies i.e. obsolete and unwanted house units will improve high vacancies. In addition the implementation of government policy should consider structural factors to avoid exaggerating and exacerbating effects.

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