Using the ARDL Approach to Explore the Effect of Chinese Individual Mobility in Australian Residential Real Estate Market

Abstract

To better understand whether Chinese mobility has a significant effect on the Australian residential real estate market, the relationship between Chinese individual mobility and Australian residential real estate market is explored. The Autoregressive Distributed Lag (ARDL) approach is employed to investigate the cointegration relationship of the variables, including Chinese tourism mobility, Chinese temporary migration mobility, Australian residential real estate prices and the Australian real estate construction. The primary finding is that Chinese tourism mobility and temporary migration mobility does not have a significant and positive effect on Australian residential real estate prices, but Chinese tourism mobility contributes to the development of the Australian real estate construction in the long run. In terms of the short run, Chinese tourism mobility and temporary migration mobility lead to an increase in Australian residential real estate prices and have a negative effect on the Australian real estate construction. It is believed that understanding the effect of Chinese individual mobility in the Australian residential real estate market will assist policymakers or researchers to make reasonable policies or methods to solve affordability issues caused by high residential real estate prices.