Does the price on apartments in Sweden appropriately reflect the loans of the private housing cooperative?
Abstract
This thesis investigates if and how the price on apartments in Sweden reflect the loans of
the private housing cooperative during the time period 2007 until 2016, mainly with a fixed
effects model. The result displays that increased leverage in the private housing cooperative
does not result in a corresponding decrease in price of the belonging apartment. This may
be a cause of a combination of determinants, for example a complex system, lack of trans-
parency in the annual reporting and different lending terms between households and private
housing cooperatives. Hence, to increase the market effciency, jurisdiction implementations
cannot only be targeted towards buyers but also towards determinants that may reduce the
asymmetric information. To really handle the problems, a thorough and extensive overview
of the entire housing market is required.
Degree
Master 2-years
Other description
MSc in Economics
Collections
View/ Open
Date
2017-07-28Author
Gårdbro, Erik
Keywords
Price
Loan
Swedish housing market
Cooperative apartments
Series/Report no.
Master Degree Project
2017:98
Language
eng