Golfing, social relationships and lower prices for land

A recent study from NUS Business School uncovers an intriguing connection between social interactions and real estate values. The research reveals that informal exchanges, such as golfing, between senior executives in real estate development and NUS Professor Sumit Agarwal, can lead to a notable drop in the sale prices of new residential units.

Impact of Informal Networking on Land Prices

Professor Agarwal, Low Tuck Kwong Distinguished Professor at NUS Business School and co-author of the study, discusses how casual social interactions among senior executives influence land prices. The study found that residential unit prices are about 8% lower when these executives engage in informal networking activities, such as golfing.

Economic Implications and Spillover Effects

The episode explores the broader economic implications of these findings, including potential revenue losses and spillover effects on neighborhoods. Professor Agarwal examines how these social dynamics can impact real estate markets and community development.

This discussion provides valuable insights into the intersection of social relationships and real estate economics, highlighting how seemingly casual interactions can have significant financial consequences.