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The effects of visual technology on price discovery for residential listings and transactions

Seow Eng Ong (NUS Business School, National University of Singapore, Kent Ridge, Singapore)
Woei Chyuan Wong (Economics and Financial Policy Institute (ECoFI), School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Malaysia)
Davin Wang (Lee Kong Chian School of Business, Singapore Management University, Singapore, Singapore)
Choon Peng Lai (DBS Bank Ltd., Singapore, Singapore)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 19 September 2022

Issue publication date: 22 February 2024

208

Abstract

Purpose

The purpose of this paper is to examine the effect of visual technology on the price discovery process in listings of residential properties in Singapore from 2015 to 2018.

Design/methodology/approach

The authors empirically model the effects of 360 virtual tours and drone video on four dimensions in price discovery – buyers’ arrival rate, sale probability, transaction prices and time-on-market – using a comprehensive data set for the residential properties in Singapore.

Findings

The analysis shows that the availability of virtual tours or drone video in a listing increases the arrival rate from potential buyers, the probability of a successful sale and the selling price. These findings are consistent with the hypothesis that technologically enhanced tools improve the quality of information and the marketability of property. However, listings with virtual tours tend to be associated with longer marketing time, which is consistent with the prediction of the information overload hypothesis.

Research limitations/implications

This paper extends the housing and price discovery literature by examining how technologically enabled new information affects property transactions.

Originality/value

To the best of the authors’ knowledge, this is the first paper to consider the impact of drone video on property market outcome.

Keywords

Acknowledgements

The authors would like to express their appreciation conference participants at PRRES 2019 and AsRES 2019 for their constructive comments.

Citation

Ong, S.E., Wong, W.C., Wang, D. and Lai, C.P. (2024), "The effects of visual technology on price discovery for residential listings and transactions", International Journal of Housing Markets and Analysis, Vol. 17 No. 2, pp. 372-394. https://doi.org/10.1108/IJHMA-07-2022-0099

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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