  Leveraged developers facing rollover risk are more likely to engage in fire
sales. Using COVID-19 as a natural experiment, we find evidence of fire sale
externalities in the Thai condominium market. Resales in properties whose
developers have higher leverage ratios have lower listing prices for listed
developers (who have access to capital market financing) but not unlisted
developers (who primarily use bank financing). We attribute this difference to
the flexibility of bank loan renegotiation versus the rigidity of debt capital
market repayments and highlight the role of commercial banks in financial
intermediation in the presence of information asymmetry.
