House price index (HPI) and Covid-19 pandemic shocks: evidence from Turkey and Kazakhstan

Abstract

Purpose This paper aims to investigate asymmetric pricing behaviour and impact of coronavirus (Covid-19) pandemic shocks on house price index (HPI) of Turkey and Kazakhstan. Design/methodology/approach Monthly HPIs and consumer price index (CPI) data ranges from 2010M1 to 2020M5 are used. This study uses a nonlinear autoregressive distributed lag model for empirical analysis. Findings The findings of this study reveal that the Covid-19 pandemic exerted both long-run and short-run asymmetric relationship on HPI of Turkey while in Kazakhstan, the long-run impact of Covid-19 pandemic shock is symmetrical long-run positive effect is similar in both HPI markets. Research limitations/implications The main limitations of this study are the study scope and data set due to data constraint. Several other macroeconomic variables may affect housing prices; however, variables used in this study satisfy the focus of this study in the presence of data constraint. HPI and CPI variables were made available on monthly basis for a considerably longer period which guaranteed the ranges of data set used in this study. Practical implications Despite the limitation, this study provides necessary information for authorities and prospective investors in HPI to make a sound investment decision. Originality/value This is the first study that rigorously and simultaneously examines the pricing behaviour of Turkey and Kazakhstan HPIs in relation to the Covid-19 pandemic shocks at the regional level. HPI of Kazakhstan is recognized in the global real estate transparency index but the study is rare. The study contributes to regional studies on housing price by bridging this gap in the real estate literature.

Working from home and long-term housing wealth inequality in large cities of advanced economies

“…Our study contributes to the ongoing discussion about the impact of the COVID-19 pandemic on housing markets in both developing and developed countries (Aliefendio glu et al, 2021;Allen-Coghlan and McQuinn, 2021;Bhat et al, 2021;Kartal et al, 2021). While these studies provide valuable insights on the significant impact of the pandemic on the housing market, to the best of our knowledge, no study proposes a conceptual framework to explain the possible mechanisms through which working from home can impact housing wealth inequality.…”

Housing prices in emerging countries during COVID-19: evidence from Turkey

“…While the literature focuses on mainly housing demand (Follain and Jimenez, 1985;Zabel, 2004;Arslan et al, 2013;Chow and Niu, 2015;Hatipo glu and Tanrıvermis , 2017;Öztürk et al, 2018;Arestis and Jia, 2019;Pontiggia and Sivitanides, 2020) and housing supply (Follain, 1979;Stover, 1986;Öztürk and Fitöz, 2009;Davidoff, 2013;Chow and Niu, 2015;Ciarlone, 2015;Öztürk et al, 2018;Pontiggia and Sivitanides, 2020), housing prices have also been coming to the attention of researchers recently (Mohan et al, 2019;Korkmaz, 2020;Pandey and Jessica, 2020;Yılmazkuday, 2020;Aliefendio glu et al, 2021;Ma et al, 2021). Hence, the present literature involves studies on housing prices examining the impacts of various variables on housing prices.…”

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“…Currently published analytical reports and economic surveys indicate that even the US and Chinese economies have been exposed to the negative effects of the COVID-19, such as reduced government revenue and lower economic activity of the population (Aliefendioğlu, Tanrivermis, & Salami, 2021;1-19;Straka et al, 2021;1-30). Low-and middle-income countries experienced similar effects from the world lockdown (Egger et al, 2021;1-12) and attempted to fill the financing gap through loans and currency swaps provided by international financial institutions, that, according to the experts, would only exacerbate the crisis, as the costs of dealing with the pandemic are likely to increase in the future, and access to immediate financing mechanisms will be limited due to the substantial debt burden (Stubbs et al, 2020;1-8).…”