On land supply and the price of residential housing

Ho, Winky K.O.; Ganesan, S.

doi:10.1007/bf02497028

Cited by 17 publications

(22 citation statements)

References 27 publications

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“…The finding is similar with Tse et al (1999) population was associated with a 0.0012 percent increase in housing price, using yearly data. The reason of such results could the length of the study as demographic factors have been demonstrated as important variables for housing price determination in the long term (Ho & Ganesan, 1998). The variable 'total number of dwelling unit building approval 'was suggested by the developed models in this study as one of the important variables contributing to house price increases in Sydney.…”

Section: Data and Estimated Proceduresmentioning

confidence: 88%

“…An increased population and a reduction in the average size of households increases the demand for housing. Most literature has demonstrated that demographic factors are statistically significant, contributing to the development of housing prices in econometric models mainly in the long term (Rosen, 1979;Turner & Struyk, 1984;Anas & Eum, 1984;Haurin & Gill, 1987;Goodman, 1990;Meen, 1995;Ho & Ganesan, 1998). Manning (1989) and Potepan (1994) have each considered the role of population growth.…”

Section: The Main Drivers Of House Pricesmentioning

confidence: 99%

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House Price Determinants in Sydney

Ge¹,

Williams²,

Steurer³

2015

22nd Annual European Real Estate Society Conference

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Purpose -This paper aims to study the main determinants of house price increase in Sydney using quarterly data for the period of March 1994 to June 2014. The paper examines whether variables such as population growth, family income, mortgage rate and supply factors that contribute to the changes of Sydney house prices.Design/methodology/approach -The paper uses reduced-form equation for house price function derived on the supply and demand functions for owner-occupied housing (DiPasquale and Wheaton, 1994). Multiple regression analysis is applied to derive the significant variables effect on house prices. Collected time series variables are tested stationary using Augmented Dickey-Fuller test.Findings -Statistical results suggest that the lack of house supply, mortgage rate, and net overseas migration are the main attributes of house price appreciation in Sydney. House prices are largely affected by the price movements from the previous periods. Multiple regression analysis is one of the methods to test causal relationship of house prices with other variables.Research limitations/implications -There are limitations using multiple regression analysis (MRA) One of the difficulties of using MRA is to handle problems with multicollinearity and non-linearity among variables. It is worthwhile to try Vector Autoregressive (VAR) or nonlinear models that may help to solve the problem of building in regression statistics.Practical implications -The findings would suggest that measures to increase of housing supply may help to prevent house price bubble.Originality/value -The research updates the investigation of house price determinants and tests the using of MRA method on the nonlinear variables.

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Section: Data and Estimated Proceduresmentioning

confidence: 88%

Section: The Main Drivers Of House Pricesmentioning

confidence: 99%

House Price Determinants in Sydney

Ge¹,

Williams²,

Steurer³

2015

22nd Annual European Real Estate Society Conference

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“…This is similar to the findings of Hilber and Vermeulen (2013) who discovered that the English planning system is an important determining factor towards the issue of housing affordability, particularly in urban areas. Another factor that can be linked to the housing supply side is the role of a limited supply of land and this is agreed by Ho and Ganesan (1998). Based on their findings, Ho and Ganesan (1998) identified that an increase in land supply will bring forth a decrease in housing prices.…”

Section: Literature Review Underlying Theoriesmentioning

confidence: 95%

“…Another factor that can be linked to the housing supply side is the role of a limited supply of land and this is agreed by Ho and Ganesan (1998). Based on their findings, Ho and Ganesan (1998) identified that an increase in land supply will bring forth a decrease in housing prices.…”

Section: Literature Review Underlying Theoriesmentioning

confidence: 95%

Macroeconomic Determinants of House Prices in Malaysia

Pinjaman¹,

Kogid²

2020

JEM

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House prices in Malaysia are considered to be seriously unaffordable as the median all-house price is relatively higher than the annual median income. Although the issue of house prices is prevalent in the country, few studies have been done to determine factors that influence its movement. The current paper, therefore, attempts to investigate the causal relationship between macroeconomic variables and house prices in Malaysia by accounting for the existence of a structural break for the variables. It is identified that in the long run, macroeconomic variables are collectively significant in influencing house price movement while the individual impact of macroeconomic variables is varied. The rise in the level of interest rates, housing supply, and inflation will result in the decline in house prices while gross domestic product and local currency appreciation cause the price to increase. It was found that stock prices do not significantly influence house prices. Of all the macroeconomic factors analyzed, exchange rate fluctuations appear to be most significant in explaining the movement of house prices. In the short-run, all macroeconomic factors are individually significant in influencing house prices and it is also identified that house prices tend to move back into their long-run state after temporary macroeconomic shocks with the speed of adjustment around 5.2 percent quarterly. It is advised for the policymakers to constantly monitor the movement of macroeconomic factors and take necessary actions to cushion the adverse impact of the movement of house prices in the country.

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“…The supply of housing may, inter alia, depend on the price of housing services, construction costs, costs of financing and land supply (Ho and Ganesan, 1998;Ge et al, 2006). Tse et al (2006) use the change in housing prices as the only influencing factor.…”

Section: A Price Modelmentioning

confidence: 99%

Disparities in Prices and Income across German NUTS 3 Regions

Kosfeld

Eckey

Lauridsen³

2008

Applied Economics Quarterly

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. In EU countries, knowledge on spatial disparities in overall price level is extremely scarce. When interregional price disparities are large, however, nominal income measures fail to assess prosperity and the catch-up processes of regions. Despite its importance for regional policy, no official regional price statistic is available as a standard. On account of this gap, this paper deals with the econometric estimation of regional price indices for German NUTS 3 regions. Econometric price models for the consumer price index (CPI) and the housing rent index (HRI) are developed on the ground of utility maximization in a two-goods model. The estimated price indices are used to analyse price disparities in the period 1995-2004 across German NUTS 3 regions. Real income comparisons show that the East/West gap is likely to be substantially larger than assessed from incomplete price data in previous studies. Terms of use: Documents in

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On land supply and the price of residential housing

Cited by 17 publications

References 27 publications

House Price Determinants in Sydney

House Price Determinants in Sydney

Macroeconomic Determinants of House Prices in Malaysia

Disparities in Prices and Income across German NUTS 3 Regions

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