IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v38y2021i4p286-304.html
   My bibliography  Save this article

Housing prices and speculation dynamics: a study of Auckland housing market

Author

Listed:
  • Yang Yang
  • Michael Rehm

Abstract

Many housing markets across the globe have experienced upward trends in real estate prices during the past two decades. The dynamics between housing prices and speculation have been analysed by existing housing literature, but this study has a few features that may deepen the understanding of this topic. This research uses transaction-level data, focuses on only investor-purchase records, distinguishes leveraged transactions from unleveraged ones and adopts a new proxy for property speculation. Furthermore, the price elasticity of housing supply has been examined as the price responsiveness is important for understanding the topic in a supply-constrained market. We build a stock adjustment model to estimate the elasticity and a vector error-correction model to conduct Granger causality tests, impulse response analyses and a variance decomposition analysis. The findings uncover a feedback loop in a market with inelastic housing supply: investors’ speculative behaviour lifts Auckland housing prices which in turn spur further housing speculation.

Suggested Citation

  • Yang Yang & Michael Rehm, 2021. "Housing prices and speculation dynamics: a study of Auckland housing market," Journal of Property Research, Taylor & Francis Journals, vol. 38(4), pages 286-304, October.
  • Handle: RePEc:taf:jpropr:v:38:y:2021:i:4:p:286-304
    DOI: 10.1080/09599916.2021.1873405
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09599916.2021.1873405
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09599916.2021.1873405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hanli Chen & Yu Zhang & Ningxin Zhang & Man Zhou & Heping Ding, 2022. "Analysis on the Spatial Effect of Infrastructure Development on the Real Estate Price in the Yangtze River Delta," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    2. Yousef Mohammadzaheh & Arash Refah-Kahriz, 2023. "Saving structure, housing speculation, and economic growth in the Iranian economy," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(1), pages 170-195, June.
    3. Yang Yang & Michael Rehm & Mingquan Zhou, 2021. "Housing Price Volatility: What's the Difference between Investment and Owner‐Occupancy?," The Economic Record, The Economic Society of Australia, vol. 97(319), pages 548-563, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:38:y:2021:i:4:p:286-304. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.