A Frequency Domain Analysis of Common Cycles in Property and Related Sectors

Abstract

This study examines cycles and common cycles in property and related sectors in the frequency domain. The findings indicate that property shares common cycles with a number of economic sectors and, in particular, with those sectors that are the user markets of property, and lags behind in business cycle phases. Property has large coherence at most frequencies with most economic sectors, but seems to have large discrepancy with them in the cycles at the annual frequency. The property market swings more severely than the economy as a whole. However, fluctuations in the property market are considered moderate relative to those in the housing market.

Keywords: housing market, property market, fluctuations, cycle

JEL Classification: R20-23, R10-15, R31, O10-12, O18