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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
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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Publisher 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;

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