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Macro-economic index effect on house prices in China

Zheyu Li (Department of Real Estate, Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)
Muhammad Najib Razali (Department of Real Estate, Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)
Hassan Gholipour Fereidouni (Department of Accounting, Economics and Finance, Faculty of Business and Law, Swinburne University of Technology, Melbourne, Australia)
Yasmin Mohd. Adnan (Department of Estate Management, Faculty of Built Environment, University of Malaya, Kuala Lumpur, Malaysia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 27 March 2018

Issue publication date: 4 June 2018

Abstract

Purpose

The purpose of this study is to estimate different data models on house prices using statistical models and the variables which are controlled by real estate policy.

Design/methodology/approach

This study used several statistical techniques, such as Vector auto-regression (VAR), Johansen co-integration and variance decomposition, which aim to assess the significant effect of macroeconomic factors on Chinese house prices.

Findings

The results show that land supply and other variables have negative effects on house prices. The results also indicate that financial mortgages for real estate have positive effects on house prices and the area of vacant houses as well as the area of housing sold.

Research limitations/implications

This study only covers three cities in China because of limitations of data for other cities.

Originality/value

This study proposes policy suggestions according to the empirical results obtained.

Keywords

Citation

Li, Z., Razali, M.N., Gholipour Fereidouni, H. and Mohd. Adnan, Y. (2018), "Macro-economic index effect on house prices in China", International Journal of Housing Markets and Analysis, Vol. 11 No. 3, pp. 453-475. https://doi.org/10.1108/IJHMA-03-2017-0025

Publisher

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Emerald Publishing Limited

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