The Nature and the Implications of Thin Market in Real Estate Valuation

TL;DRAbstract

This paper focuses on thin market issues in real estate mass appraisal. Thin market refers to the accuracy of property value and the availability of comparables data that can be obtained through the market. The purpose of this paper is to identify the nature and the implications of thin market toward real estate appraisal. One of the most important criteria that explain the nature of thin market is the transaction volume. In addition, the nature of thin market also related with macro factors that affecting residential property value such as demography, population, income level and economic based. This paper focuses on double storey terrace house as a case study in Tangkak area. Questionnaires were distributed to the respective local authorities in order to validate the thin market issues in the market. The result indicates the existence of the thin market issues in the study area. There are various implications occurred from thin market issues such as market manipulation, instability o

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