Financial Market Variables and Housing Prices: Evidence of ASEAN+2

Abstract

By employing the GMM and SVAR models in this paper, the effects that bond prices, equity prices, gold prices, and domestic credit have on housing prices were analyzed, using data from 2002q4 to 2015q1 for the ASEAN + 2 countries. The GMM results indicated the significant effects of equity prices and gold prices on housing prices and insignificant effects of bond prices and demotic credit on housing prices in selected Asian countries. Furthermore, findings show that worldwide economic crisis has negative impacts on housing prices in Asian countries. Moreover, Impulse response results indicated that housing prices respond simultaneously and positively to equity prices in all countries except Malaysia and Singapore. Likewise, Variance deposition findings demonstrate the importance of gold prices in fluctuation of housing prices in Malaysia and China especially in the long term.

Citation

Ziaei, S.M. and Bhatti, G.A. (2017), "Financial Market Variables and Housing Prices: Evidence of ASEAN+2", Advances in Pacific Basin Business Economics and Finance (Advances in Pacific Basin Business, Economics and Finance, Vol. 5), Emerald Publishing Limited, Leeds, pp. 189-201. https://doi.org/10.1108/S2514-465020170000001009