Price Volatility of Commercial and Residential Property

Posted: 22 Oct 1999

See all articles by Sunny Kai Sun Kwong

Sunny Kai Sun Kwong

The Chinese University of Hong Kong (CUHK) - Department of Economics

Charles Ka Yui Leung

The Chinese University of Hong Kong (CUHK) - Department of Economics

Abstract

This paper studies the relative volatility of commercial and residential property prices. Empirical evidence of commercial property prices being more volatile than that of residential property is presented. Models are built a la Lucas. Theoretical statements are derived to show the exact conditions under which the observations arise. The cases of fixed supply and flexible supply are considered separately.

JEL Classification: R21, R31

Suggested Citation

Kwong, Kai Sun Sunny and Leung, Ka Yui Charles, Price Volatility of Commercial and Residential Property. Available at SSRN: https://ssrn.com/abstract=181495

Kai Sun Sunny Kwong (Contact Author)

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong
2609-7055 (Phone)

Ka Yui Charles Leung

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong
+852-2609-7158 (Phone)
+852-2603-5805 (Fax)

HOME PAGE: http://www.cuhk.edu.hk/eco/staff/kyleung

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