eprintid: 3448
rev_number: 7
eprint_status: archive
userid: 1
dir: disk0/00/00/34/48
datestamp: 2021-03-04 16:38:48
lastmod: 2021-03-04 16:38:48
status_changed: 2021-03-04 16:38:48
type: thesis
metadata_visibility: show
sword_depositor: 1
creators_name: Leuw, Arjan de
creators_id: S3542173
creators_email: a.d.m.de.leuw@student.rug.nl
title: Investment behaviour in the housing market
ispublished: unpub
full_text_status: public
abstract: Residential property flipping is defined as an investment strategy aiming to resell housing within a short timeframe. Investors flipping properties play different economic roles in housing markets. The main focus of this study is to investigate the welfare implications of flippers in the Dutch housing market and to advise policy measures accordingly. In this paper, a comparison is presented between flipped and non-flipped properties in the Netherlands between 1993 and 2019. Using data from the Dutch Land Registry Office, we employ a hedonic and repeat sales model to estimate the returns of flipped properties, the impact of increasing experience in flipping properties on returns and spatial and temporal dimensions of flipping. The results reveal that returns of flipping properties are 7.8% higher relative to market returns and increase with urban density up to 10.7% in the four largest municipalities. Furthermore, the returns of flipped properties increase from 7.3% if an individual flipped zero to one property to 14.4% if the subject flipped two to four properties and 12.4% if the subject has flipped five or more properties  relative to individuals who do not engage in flipping. Over time, the returns of flipped properties are positively related to overheating of the market, with highest returns measured in 2009 and 2018. Overall, we cannot exclude flippers acting as intermediaries, but flippers do show signs of speculative investment behaviour.
date: 2020
pages: 22
thesis_type: master
degree_programme: VG
tutors_name: Liu, X.
tutors_organization: Fac. Ruimtelijke wetenschappen, Basiseenheid Economische Geografie
tutors_email: Xiaolong.Liu@rug.nl
security: validuser
keywords_local: house prices
keywords_local: housing market
keywords_local: investment behaviour
keywords_local: real estate
keywords_local: residential property flipping
keywords_local: short-term investors
keywords_local: speculators
language_iso: en
agreed_repository: yes
date_issued: 2021-03-04
citation:   Leuw, Arjan de  (2020) Investment behaviour in the housing market.  Master thesis.   
document_url: https://frw.studenttheses.ub.rug.nl/3448/1/MT%20Arjan%20de%20Leuw.pdf