The interpretation of market related information and data in the South African residential property market affects at what stage each individual party lies in the real estate market
Date
2008-09-01T11:01:38Z
Authors
Yudelowitz, Dani Menachem
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Abstract
In recent times the emergence of the property cycle and the effects that it has on the
property market has caused the relevant parties involved in the market to start placing
more emphasis on how these cycle works. The overall objective of this study is to try
establish if the interpretation of market related data affects at what position these parties
are relative to one another on the property curve. The study concentrates on the use of
market indicators, indices and variables in trying to determine an individual’s position on
the property market curve. It also concentrates on how this market data is retrieved and
what effect it has on how they interpret the data.
The methodology adopted for this study involves the collecting and interpretation of
market related indices and indicators relevant to the property market over a ten year
period from 1996 through to 2006. This data was then used to establish the key indicators
used. A questionnaire was sent out to the relevant parties involved in the property market
to ascertain the extent of what the main sources of market information are and how this
data is collected and interpreted. This was limited to individuals in the Gauteng region.
The data was examined and collected in the form of line graphs, histograms and pie
charts.
The data was then examined and presented in four areas: the major sources of
information used by parties for market related data, to try and establish where these
parties are relative to one another on the property curve, the effect that the different types
of sources of information has on each party and finally to try determine by how much
these parties lag or lead one another on the curve.
Description
Keywords
Property cycle, Market indicators, Rational expectations, Market data