Determinants of House Prices in Nine Asia-Pacific Economies

Glindro, Eloisa T.; Subhanij, Tientip; Szeto, Jessica; Zhu, Haibin

doi:10.2139/ssrn.1333646

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Determinants of House Prices in Nine Asia-Pacific Economies

BIS Working Paper No. 263

51 Pages Posted: 27 Jan 2009

See all articles by Eloisa T. Glindro

Eloisa T. Glindro

Bank for International Settlements (BIS)

Haibin Zhu

Bank for International Settlements (BIS)

Date Written: October 1, 2008

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.

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

JEL Classification: G12, R31

Suggested Citation: Suggested Citation

Glindro, Eloisa T. and Subhanij, Tientip and Szeto, Jessica and Zhu, Haibin, Determinants of House Prices in Nine Asia-Pacific Economies (October 1, 2008). BIS Working Paper No. 263, Available at SSRN: https://ssrn.com/abstract=1333646 or http://dx.doi.org/10.2139/ssrn.1333646