Impact of Number of Bidders on Sale Price of Auctioned Condominium Apartments in Stockholm

Abstract

This paper empirically tests the effect of the number of bidders on the sale price of condominium apartments in Stockholm by using data gathered during 2010. The results show that the number of participants in a real estate auction plays a significant role in the final auctioned price. The average price per square meter paid by every extra bidder has an increasing but decelerating growth, starting with an approximate 4 percent increase when going from one to two bidders.
 

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Keywords

Real estate auction; Number of bidders; Price effect

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