Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China

The interplay between land management and real estate market dynamics is critical for sustainable development. This study employs behavioral finance theory to explore how irrational behaviors among key market participants, including developers, consumers, and brokers, influence housing prices in Chi...

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Main Authors: Sung-woo Cho, Jin-young Jung
Format: Article
Language:English
Published: MDPI AG 2024-09-01
Series:Land
Subjects:
Online Access:https://www.mdpi.com/2073-445X/13/9/1478
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author Sung-woo Cho
Jin-young Jung
author_facet Sung-woo Cho
Jin-young Jung
author_sort Sung-woo Cho
collection DOAJ
description The interplay between land management and real estate market dynamics is critical for sustainable development. This study employs behavioral finance theory to explore how irrational behaviors among key market participants, including developers, consumers, and brokers, influence housing prices in China. By examining decision aggregation processes and sociocultural influences, we identify significant behavioral factors such as overconfidence, herding behavior, and availability bias that contribute to real estate price fluctuations. Our empirical analysis, based on data from 2001 to 2018, reveals how these behaviors impact market outcomes and provides insights for improving land administration systems. The findings offer valuable perspectives for policy and strategy development aimed at stabilizing housing markets, promoting sustainable real estate practices, and supporting the achievement of sustainable development goals (SDGs). This research underscores the importance of integrating behavioral finance into land management to enhance the efficiency and security of land tenure systems.
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spelling doaj-art-6d9bad7d9b514c8482f87c5be2d95b742025-08-20T01:55:37ZengMDPI AGLand2073-445X2024-09-01139147810.3390/land13091478Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in ChinaSung-woo Cho0Jin-young Jung1College of Business, Gachon University, Seongnam-si 13120, Republic of KoreaCollege of Business Administration, Inha University, Incheon 22212, Republic of KoreaThe interplay between land management and real estate market dynamics is critical for sustainable development. This study employs behavioral finance theory to explore how irrational behaviors among key market participants, including developers, consumers, and brokers, influence housing prices in China. By examining decision aggregation processes and sociocultural influences, we identify significant behavioral factors such as overconfidence, herding behavior, and availability bias that contribute to real estate price fluctuations. Our empirical analysis, based on data from 2001 to 2018, reveals how these behaviors impact market outcomes and provides insights for improving land administration systems. The findings offer valuable perspectives for policy and strategy development aimed at stabilizing housing markets, promoting sustainable real estate practices, and supporting the achievement of sustainable development goals (SDGs). This research underscores the importance of integrating behavioral finance into land management to enhance the efficiency and security of land tenure systems.https://www.mdpi.com/2073-445X/13/9/1478real estatesustainable developmentbehavioral financedecision aggregationherding effectavailability bias
spellingShingle Sung-woo Cho
Jin-young Jung
Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
Land
real estate
sustainable development
behavioral finance
decision aggregation
herding effect
availability bias
title Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
title_full Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
title_fullStr Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
title_full_unstemmed Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
title_short Behavioral Finance Insights into Land Management: Decision Aggregation and Real Estate Market Dynamics in China
title_sort behavioral finance insights into land management decision aggregation and real estate market dynamics in china
topic real estate
sustainable development
behavioral finance
decision aggregation
herding effect
availability bias
url https://www.mdpi.com/2073-445X/13/9/1478
work_keys_str_mv AT sungwoocho behavioralfinanceinsightsintolandmanagementdecisionaggregationandrealestatemarketdynamicsinchina
AT jinyoungjung behavioralfinanceinsightsintolandmanagementdecisionaggregationandrealestatemarketdynamicsinchina