Abstract:Using daily hedonic housing price index for five Australian capital cities, we document a negative relationship between prior COVID-19 cases and daily housing returns. Specifically, the daily housing return drops by 0.35 basis points or 1.26 percentage points annually for every doubling of newly confirmed COVID-19 cases in a state. We also examine the effect of government lockdown orders on housing returns and find insignificant results. These findings are robust under alternative pandemic proxies such as tota… Show more
“…It is worth mentioning here that, as in many other countries [87], the Finnish property market has been significantly affected by the outbreak of the COVID-19 pandemic since March 2020 [88]. According to Finnish National Land Survey statistics [89], the number of cottages changing hands in the first four months of 2021 was about 50 percent higher, with the average price of cottages more than 20 percent higher than in 2020.…”
To date, studies that provide a comprehensive understanding of the current state of the cottage in Finland are lacking in the literature. This paper explored this phenomenon, which has great cultural and economic importance for Finland, through interviews from the perspective of experts. Key findings based on main themes including cottage buyers, characteristics of the dream cottage, diversified cottages, the regulation of cottages in municipalities, and challenges in the regulation of cottages, highlighted that: (1) cottage buyers were reported to be mostly in their 50s and wealthy; (2) buyers were in high demand for easy solutions and cottages with a similar level of equipment to a primary home; (3) environmental issues were considered interesting, but buyers primarily paid attention to the cleanliness of the nature and especially the body of water surrounding their cottage; (4) distance to the cottage and closest services were deciding factors, and there was greater demand for waterfront cottages; (5) popular cottage sizes varied widely, and the diversification was among the highlights; (6) while changes in use were possible under certain circumstances, sewage and wastewater regulation, and sizing of beach construction were considered challenging. It is believed that this paper will contribute to the balanced territorial development of cottages in Finland and the vitality of cottage-rich municipalities.
“…It is worth mentioning here that, as in many other countries [87], the Finnish property market has been significantly affected by the outbreak of the COVID-19 pandemic since March 2020 [88]. According to Finnish National Land Survey statistics [89], the number of cottages changing hands in the first four months of 2021 was about 50 percent higher, with the average price of cottages more than 20 percent higher than in 2020.…”
To date, studies that provide a comprehensive understanding of the current state of the cottage in Finland are lacking in the literature. This paper explored this phenomenon, which has great cultural and economic importance for Finland, through interviews from the perspective of experts. Key findings based on main themes including cottage buyers, characteristics of the dream cottage, diversified cottages, the regulation of cottages in municipalities, and challenges in the regulation of cottages, highlighted that: (1) cottage buyers were reported to be mostly in their 50s and wealthy; (2) buyers were in high demand for easy solutions and cottages with a similar level of equipment to a primary home; (3) environmental issues were considered interesting, but buyers primarily paid attention to the cleanliness of the nature and especially the body of water surrounding their cottage; (4) distance to the cottage and closest services were deciding factors, and there was greater demand for waterfront cottages; (5) popular cottage sizes varied widely, and the diversification was among the highlights; (6) while changes in use were possible under certain circumstances, sewage and wastewater regulation, and sizing of beach construction were considered challenging. It is believed that this paper will contribute to the balanced territorial development of cottages in Finland and the vitality of cottage-rich municipalities.
“…Tanrıvermiş [7] examined the possible effects and impacts of the COVID-19 outbreak on Turkish real estate development and management processes, by making an evaluation of administrative and media records. In Oceania, Hu et al [8] documented a negative relationship between prior COVID-19 cases and daily housing returns using daily hedonic housing price indices for five Australian state capital cities. They found the daily housing return dropped by 0.35 basis points or 1.26 percentage points annually for every doubling of newly confirmed COVID-19 cases in a state of Australia.…”
While it is well-known that housing prices generally increased in the United States (U.S.) during the COVID-19 pandemic crisis, to the best of our knowledge, there has been no research conducted to understand the spatial patterns and heterogeneity of housing price changes in the U.S. real estate market during the crisis. There has been less attention on the consequences of this pandemic, in terms of the spatial distribution of housing price changes in the U.S. The objective of this study was to explore the spatial patterns and heterogeneous distribution of housing price change rates across different areas of the U.S. real estate market during the COVID-19 pandemic. We calculated the global Moran’s I, Anselin’s local Moran’s I, and Getis-Ord’s Gi∗ statistics of the housing price change rates in 2856 U.S. counties. The following two major findings were obtained: (1) The influence of the COVID-19 pandemic crisis on housing price change varied across space in the U.S. The patterns not only differed from metropolitan areas to rural areas, but also varied from one metropolitan area to another. (2) It seems that COVID-19 made Americans more cautious about buying property in densely populated urban downtowns that had higher levels of virus infection; therefore, it was found that during the COVID-19 pandemic year of 2020–2021, the housing price hot spots were typically located in more affordable suburbs, smaller cities, and areas away from high-cost, high-density urban downtowns. This study may be helpful for understanding the relationship between the COVID-19 pandemic and the real estate market, as well as human behaviors in response to the pandemic.
“…Studies in 5 major cities in Australian states have presented results of a 1.26-1.77% p.a. decline in property prices when the number of infected people doubles over a period of time [2]. A possible substitution effect is also discussed.…”
This paper deals with the relationship between the residential house price index and the stock markets at the time of the coronavirus pandemic in 2020. The research focuses primarily on the real estate market in the Czech Republic and the development of the Prague Stock Exchange index. The period from 2007 to the end of 2020 is monitored. The subject of the examination is not the assessment of the severity or type of crisis, only the development of markets and their shocks. House price index (HPI) and stock market indices are used for consistent analysis. To find a broader context the mortgage interest rate and the unemployment rate are used. With the help of correlation and analysis of implemented government measures, the basic conditions for the development of indices and measures are sought. Government measures are not only aimed at local conditions, but often also affect cooperation in international trade and traveling. The aim is to evaluate the degree of dependence of the development of real estate and stock markets on measures implemented to reduce the effects of the crisis. The reason is also the fact that there are many common variables (tradable banking companies, local and international investors, etc.).
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