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The impact of auctions on residential property prices

Journal Article


Abstract


  • This study assesses whether the sale method in residential real estate markets –

    auction versus private treaty – is a determinant of sale price. Utilising a larger

    and richer dataset than previous research, we test for a price effect in auction

    sales in Sydney and Christchurch. When self-selection biases are corrected for,

    using two-stage hedonic regression analysis and a matched sampling procedure,

    we find no significant difference between prices of properties sold at auction to

    those sold by private treaty. This conflicts with the conclusions of previous

    research in the Australian and New Zealand housing markets, which have documented

    a price premium associated with auction sales.

Authors


  •   Frino, Alex
  •   Peat, Maurice (external author)
  •   Wright, Danika (external author)

Publication Date


  • 2012

Citation


  • Frino, A., Peat, M. & Wright, D. (2012). The impact of auctions on residential property prices. Accounting and Finance, 52 (3), 815-830.

Scopus Eid


  • 2-s2.0-84866034900

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1336

Number Of Pages


  • 15

Start Page


  • 815

End Page


  • 830

Volume


  • 52

Issue


  • 3

Place Of Publication


  • Australia

Abstract


  • This study assesses whether the sale method in residential real estate markets –

    auction versus private treaty – is a determinant of sale price. Utilising a larger

    and richer dataset than previous research, we test for a price effect in auction

    sales in Sydney and Christchurch. When self-selection biases are corrected for,

    using two-stage hedonic regression analysis and a matched sampling procedure,

    we find no significant difference between prices of properties sold at auction to

    those sold by private treaty. This conflicts with the conclusions of previous

    research in the Australian and New Zealand housing markets, which have documented

    a price premium associated with auction sales.

Authors


  •   Frino, Alex
  •   Peat, Maurice (external author)
  •   Wright, Danika (external author)

Publication Date


  • 2012

Citation


  • Frino, A., Peat, M. & Wright, D. (2012). The impact of auctions on residential property prices. Accounting and Finance, 52 (3), 815-830.

Scopus Eid


  • 2-s2.0-84866034900

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1336

Number Of Pages


  • 15

Start Page


  • 815

End Page


  • 830

Volume


  • 52

Issue


  • 3

Place Of Publication


  • Australia