Determinants of House Prices in Nine Asia-Pacific Economies

51 Pages Posted: 27 Jan 2009

See all articles by Eloisa T. Glindro

Eloisa T. Glindro

Bank for International Settlements (BIS)

Tientip Subhanij

Bank of Thailand

Jessica Szeto

affiliation not provided to SSRN

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

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

Eloisa T. Glindro

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Tientip Subhanij

Bank of Thailand ( email )

273 Samsen Road
Bangkhunprom, Bangkok 10200
United States

Jessica Szeto

affiliation not provided to SSRN

Haibin Zhu (Contact Author)

Bank for International Settlements (BIS) ( email )

Hong Kong
Hong Kong
852 2878 7145 (Phone)
852 2878 7123 (Fax)

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