Geitner et al (2001) describes the real estate system works in the form of three interrelated segments as follows:

1. Space Market
2. Capital/Asset Market and the
3. Property Development Segment.

1. Explain what each of the three (3) segments represents and how they relate to each other ?

1. Do you think this description accurately captures how the real estate market works in practice?

1. Lastly discuss what an asset price bubble is and how this can disrupt the operation of the real estate market?