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Determinants of house prices in nine Asia-Pacific economies

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Author Info

  • Eloisa T Glindro
  • Tientip Subhanij
  • Jessica Szeto
  • Haibin Zhu
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    Abstract

    The paper investigates the characteristics of house price dynamics and the role of institutional features in nine Asia-Pacific economies during 1993-2006. On average, house prices tend to be more volatile in markets with lower supply elasticity and a more flexible business environment. At the national level, the current run-up in house prices mainly reflects adjustment to improved fundamentals rather than speculative housing bubbles. However, evidence of bubbles does exist in some market segments.

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    Bibliographic Info

    Paper provided by Bank for International Settlements in its series BIS Working Papers with number 263.

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    Length: 51 pages
    Date of creation: Oct 2008
    Date of revision:
    Handle: RePEc:bis:biswps:263

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    Related research

    Keywords: Asia-Pacific economies; house price dynamics; housing bubble; house price overvaluation; mean reversion; persistence parameter;

    References

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    1. John Y. Campbell & Joao F. Cocco, 2004. "How Do House Prices Affect Consumption? Evidence From Micro F. Data," Harvard Institute of Economic Research Working Papers 2045, Harvard - Institute of Economic Research.
    2. Charles Himmelberg & Christopher Mayer & Todd Sinai, 2005. "Assessing High House Prices: Bubbles, Fundamentals and Misperceptions," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 67-92, Fall.
    3. Dennis R. Capozza & Patric H. Hendershott & Charlotte Mack & Christopher J. Mayer, 2002. "Determinants of Real House Price Dynamics," NBER Working Papers 9262, National Bureau of Economic Research, Inc.
    4. Eric Chan & Michael Davies & Jacob Gyntelberg, 2006. "The role of government-supported housing finance agencies in Asia," BIS Quarterly Review, Bank for International Settlements, December.
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    19. Gan, Jie, 2007. "Collateral, debt capacity, and corporate investment: Evidence from a natural experiment," Journal of Financial Economics, Elsevier, vol. 85(3), pages 709-734, September.
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    Citations

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    Cited by:
    1. Matthew S. Yiu & Jun Yu & Lu Jin, 2012. "Detecting Bubbles in Hong Kong Residential Property Market," Working Papers 31-2012, Singapore Management University, School of Economics.
    2. Steffen Dyck & Syetarn Hansakul & Rachna Saxena, 2009. "Emerging Asia's Middle Class-A Force to be Reckoned With," Working Papers id:2232, eSocialSciences.
    3. repec:onb:oenbwp:y:2013:i:2:b:1 is not listed on IDEAS
    4. Gabriele Galati & Federica Teppa & Rob Alessie, 2013. "Heterogeneity in house price dynamics," DNB Working Papers 371, Netherlands Central Bank, Research Department.
    5. Antje Hildebrandt & Duy T. Huynh-Olesen & Katharina Steiner & Karin Wagner, 2013. "Residential Property Prices in Central, Eastern and Southeastern European Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2.

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