Abstract
Previous studies on the price and time trade-off in real estate focused primarily on the real estate traded in the secondary market. This relation, however, depends rather critically on seller motivations. This study examines the price and time trade-off for new residential developments where developer motivations differ substantially from individual seller motivations. In addition, by using the information in listing and selling prices, we seek to evaluate how the two measures of overpricing affect the speed at which new developments are sold. Using high-rise multiple-unit condominium data from Singapore, our empirical analysis shows that the overpricing strategy does not pay off, but leads to longer time on the market (TOM). Furthermore, the factors about competitor behaviour have significant influence on TOM through their impact on listing price. It also shows that buyers are more price-sensitive when there are some competitors in the same area and period.
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