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Matching in Housing Markets: The Role of Ethnic Social Networks

REVIEW OF FINANCIAL STUDIES2019-10

Agarwal, Sumit | Choi, Hyun-Soo | He, Jia | Sing, Tien Foo

This paper investigates the role of ethnic matching between buyers and sellers in Singapore's public housing market. We find that sellers sell homes in blocks with a high concentration of their own (other) ethnic group(s) at significant premiums (discounts). Chinese sellers earn 1.7% higher premiums when selling homes to Chinese buyers in high Chinese concentrations housing blocks, but Malay sellers accept 1.6% discounts from Malay buyers in the same blocks. We find that the high volume of within-ethnicity transactions with the price discounts is supported by the ethnic social networks, that is, through ethnicity-specialized real estate agents.

Publisher
OXFORD UNIV PRESS INC
Issue Date
2019-10
Article Type
Article
Citation
REVIEW OF FINANCIAL STUDIES, Vol.32, No.10, pp.3958 - 4004
ISSN
0893-9454
DOI
10.1093/rfs/hhz006
Contact : Joo, Sunhee ( shjoo2006@kaist.ac.kr )

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