—This paper focuses on thin market issues in real estate appraisal. Thin market refers to low availability of comparables data from the market. The purpose of this paper is to identify the determinants and the implications of thin market towards real estate appraisal. Transaction volume is one of the most important criteria in explaining the determinants of thin market. In addition, thin market is also related to macro factors that affect residential real estate values such as demography, population, income level and economic base. This study is focused on double storey terrace houses submarket. Questionnaires were distributed to the respective local authorities to validate the issue of thin market in Tangkak, State of Johor Malaysia. The results indicate the existence of thin market in the study area. The findings show that the price bias is the most important implication in this submarket. Thus, thin market potentially leads to pricing problem in the residential market.
—Assessment Accuracy, Real Estate, Thin Market.
The authors are with the Centre of Real Estate Studied (CRES) Faculty of Geoinformation & Real Estate Universiti Teknologi Malaysia 81310 Skudai, Johor Malaysia .(email@example.com)
Cite:M. Junainah, M. A. Hishamuddin, and I. Suriatini, "The Existence and Implications of Thin Real Estate Market," International Journal of Trade, Economics and Finance vol.2, no.5, pp. 376-380, 2011.