%0 Conference Paper %B 18th Annual European Real Estate Society Conference %D 2011 %T The Impact of Real Estate Prices:Noise Tradersí Self-Fulfilling Expectations and Market Stress %A Hung, KuoChe %A Chen, MingChi %A Huang, LingYu %X This paper examines whether noise traders generated by self-fulfilling mechanisms cause irrational price volatility. Because their self-fulfilling expectations are based on market sentiment, the regulators need to stabilize the prices through policy announcements or policy tools. This study analyzes noise tradersí self-fulfilling expectation in the Chinaís market where government strongly interfere. We find that asymmetric information may initiate noise traders into self-fulfilling expectation, and government is unsuccessful to control the house price shooting. We further consider the influence of market state switching. It finds that market presents evidence of self-fulfilling expectation, and also increased price volatility counteracts government intervention. Finally, other financial markets except stock are still ineffectiveness by controlling contagion effect. %B 18th Annual European Real Estate Society Conference %S ERES: Conference %C Eindhoven, the Netherlands %G eng %3 RePEc:arz:wpaper:eres2011_204 %! Conference 2011 %& H1: Shopping Centres %R 10.15396/eres2011_204