The paperfirstlyconstructs a theoreticalspeculationmodel for China real estate. Then we investigate the relationships between real estate price andspeculativebehaviorwith data from 14cities.
"To me, many of these projects are a result of easy access to capital and a combination of wishful thinking and speculativebehavior rather than rational business calculations, " said Victor Teo, assistant professor at the University of Hong Kong.
In the short run, at least, the herd behavior of the pros makes it even harder for you to take a winning bet against the "speculative element" in a stock's price.