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Property Market Efficiency: An Institutional Economics Perspective

Author

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  • Geoffrey Keogh

    (Centre for Property Research, Department of Land Economy, University of Aberdeen, St Mary's, King's College, Aberdeen, AB24 3UF, UK, g.keogh@abdn.ac.uk)

  • Eamonn D'Arcy

    (Centre for Spatial and Real Estate Economics, Department of Economics, Faculty of Urban and Regional Studies, University of Reading, PO Box 219, Reading, RG6 2AW, UK, p.e.darcy@rdg.ac.uk)

Abstract

This paper reassesses the debate around property market efficiency and introduces an institutional perspective. It considers property market efficiency in terms of the specific characteristics of property itself and the processes through which property is used and traded. It argues that the institutional dimension fundamentally alters the concept of efficiency and leads to a partial and contingent judgement on achieved efficiency. Instead of seeking a judgement on whether the 'property market' as an entity is efficient, the institutional approach allows the possibility that 'property market process' may be efficient for some market participants but not for others. It also introduces a time dimension, suggesting the need to assess the adaptability of property market process as economic and social conditions change.

Suggested Citation

  • Geoffrey Keogh & Eamonn D'Arcy, 1999. "Property Market Efficiency: An Institutional Economics Perspective," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2401-2414, December.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:13:p:2401-2414
    DOI: 10.1080/0042098992485
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    References listed on IDEAS

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    3. Ho-Yin Yue, 2012. "Why housing price in Hong Kong? An explanation in game theory approach," Economics and Business Letters, Oviedo University Press, vol. 1(3), pages 8-15.
    4. Thierry Theurillat & Pierre-Yves Donzé, 2015. "Retail Networks and Real Estate: the case of Swiss luxury watches in China and Southeast," Discussion Papers in Economics and Business 15-28, Osaka University, Graduate School of Economics.
    5. Agnieszka Małkowska & Małgorzata Uhruska & Mateusz Tomal, 2019. "Age and Experience versus Susceptibility to Client Pressure among Property Valuation Professionals—Implications for Rethinking Institutional Framework," Sustainability, MDPI, vol. 11(23), pages 1-23, November.
    6. Elena IONASCU & Marilena MIRONIUC & Ion ANGHEL, 2019. "Transparency of Real Estate Markets: Conceptual and Empirical Evidence," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(154), pages 306-306.

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