Does the Dipasquale-Wheaton Model Explain the House Price Dynamics in China Cities?

Chow, Kenneth K.; Yiu, Matthew S.; Ka, Charles; Leung, Yui; Tam, Dickson C.

doi:10.2139/ssrn.1321967

Cited by 9 publications

(3 citation statements)

References 36 publications

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“…At the same time, they focus on a time period during which significant policy changes took place in China significantly affecting housing markets. Furthermore, Chow et al (2008) look at data from four Chinese municipalities and find that housing price growth is positively correlated with household income growth but negatively correlated with the housing stock growth. Their study also finds that housing construction is negatively affected by land prices and the housing stock of the previous period.…”

Section: Housing Prices Rent and New Constructionmentioning

confidence: 99%

What drives housing prices, rent and new construction in China

Staikos

Xue

2017

IJHMA

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Purpose With this paper, the authors aim to investigate the drivers behind three of the most important aspects of the Chinese real estate market, housing prices, housing rent and new construction. At the same time, the authors perform a comprehensive empirical test of the popular 4-quadrant model by Wheaton and DiPasquale. Design/methodology/approach In this paper, the authors utilize panel cointegration estimation methods and data from 35 Chinese metropolitan areas. Findings The results indicate that the 4-quadrant model is well suited to explain the determinants of housing prices. However, the same is not true regarding housing rent and new construction suggesting a more complex theoretical framework may be required for a well-rounded explanation of real estate markets. Originality/value It is the first time that panel data are used to estimate rent and new construction for China. Also, it is the first time a comprehensive test of the Wheaton and DiPasquale 4-quadrant model is performed using data from China.

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Section: Housing Prices Rent and New Constructionmentioning

confidence: 99%

What drives housing prices, rent and new construction in China

Staikos

Xue

2017

IJHMA

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“…sterilization, affordable housing and housing subsidies -are theoretically debated. Empirically, Chow, Yiu, Leung and Tam (2008) applied the D-W Model to four Chinese municipalities for panel estimation. We follow their theoretical framework and extend the empirical model to 35 major cities.…”

Section: Four Quandrant Frameworkmentioning

confidence: 99%

Property Prices and Housing Affordability in China: A Regional Comparison

Chiang

2014

Journal of Comparative Asian Development

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This study explores two issues related to China's property market dynamics. First, it examines how regional property price disparity is caused by space and capital market differentials, based on the Four-Quadrant Framework. With the panel data fixed effect model of 35 major cities from 2002 to 2012, it integrates regional factors, or the economic and demographic conditions in Quadrant I, into the Four-Quadrant framework. The empirical results suggest that in the coastal cities the capital market plays a bigger role in determining housing price while in the inner cities, the space market plays a bigger role. Second, the housing affordability indicator is modified by considering the impacts of household disposable income and urban population density on households' ability to purchase a home, which is in line with the first issue, to integrate economic and demographic conditions into investigating housing price dynamics. Comparing regional disparity, the eastern cities have higher housing affordability conditions than the central and western cities. The main reason is that the eastern cities have attracted human capital inflow from the central and western regions, resulting in a clustering effect for the coastal regions and a hollowing-out effect for the inland regions. The analysis has implications for investors and the government.

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“…The critical analysis has been complemented with Fischer's approach from 1992 and Poterba's approach from 1984 and 1991. Furthermore, this study refers to the applied use of the discussed conceptions in the works of Oikarinena (2007) as well as Chow, Yiu, Leung and Tam (2008).…”

Section: Abstract Theoretical Basis Of the Functioning Of The Housing...mentioning

confidence: 99%

Teoretyczne Podstawy Funkcjonowania Systemu Mieszkaniowego - Zagadnienia Wybrane

Lis

2012

SSE

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Kryzys finansowy, który rozpoczął siĊ w pierwszym półroczu 2007 r. w Stanach Zjednoczonych, a nastĊpnie rozprzestrzenił siĊ na całą Ğwiatową gospodarkĊ, po raz kolejny, chociaĪ tym razem z wiĊkszą siłą, obnaĪył słaboĞci i uwypuklił zalety poszczególnych mechanizmów finansowania inwestycji mieszkaniowych (Lis 2010). Kryzys ten miał powaĪne konsekwencje nie tylko dla sfery finansowej, ale przede wszystkim dla sfery realnej, w szczególnoĞci dla sektora nieruchomoĞci. W Stanach Zjednoczonych, jak i w innych, zwykle silnie powiązanych systemem finansowym, gospodarkach na Ğwiecie, nastąpił gwałtowny spadek cen mieszkaĔ, a inwestycje mieszkaniowe uległy całkowitemu zahamowaniu ze wzglĊdu na zamroĪenie Ĩródeł finansowania. W tym miejscu powstaje pytanie dotyczące charakteru powiązaĔ pomiĊdzy rynkiem nieruchomoĞci, rynkiem finansowym a szeroko rozumianą gospodarką. WłaĞciwa identyfikacja tych związków moĪe przyczyniü siĊ do efektywniejszych działaĔ paĔstwa nie tylko w zakresie realizacji celów polityki mieszkaniowej, ale takĪe działaĔ zapewniających stabilnoĞü gospodarki.Celem niniejszego artykułu jest próba identyfikacji zasad funkcjonowania systemu mieszkaniowego i jego powiązaĔ z otoczeniem. Opracowanie ma charakter teoretyczny. Przedmiotem rozwaĪaĔ są koncepcje DiPasquale'a

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Does the Dipasquale-Wheaton Model Explain the House Price Dynamics in China Cities?

Cited by 9 publications

References 36 publications

What drives housing prices, rent and new construction in China

What drives housing prices, rent and new construction in China

Property Prices and Housing Affordability in China: A Regional Comparison

Teoretyczne Podstawy Funkcjonowania Systemu Mieszkaniowego - Zagadnienia Wybrane

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