ABSTRACT
A lot of investors want to invest in real estate markets, which are traditionally considered as local businesses; for example, houses, industrial buildings and hotels. Nevertheless, expensive housing often bars the entry of many investors. Problems such as lumpiness, obsolescence, liquidity, poor quality due to asymmetric information (Li 2012, Li 2009, Li 2010a, Li 2010b), short-selling constraints, indivisible and high taxation and transaction costs deter many investors from engaging in direct real estate investments (Li and Chow 2015, Cotter and Roll 2015).
