An examination of house price bubble in the real estate sector: the case of a small island economy – Fiji
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 25 February 2021
Issue publication date: 23 July 2021
Abstract
Purpose
This paper aims to assess the equilibrium house price in the city of Suva (Fiji) and to analyse the house price bubble in the Fiji housing market.
Design/methodology/approach
This paper adopts a time series approach to determine the presence of house price bubbles in Fiji over the period from 1988 to 2018.
Findings
The findings suggest that real income, land cost, building material price, inflation rate, volatility, household size and wealth have a positive impact on house prices, whereas user cost of capital and political disturbances have a negative impact. The findings further indicate that the Fijis’ housing market does not constitute any house price bubble.
Practical implications
This paper draws policy implications for a small developing state (Fiji) and other similar economies.
Originality/value
The price bubble in the Fiji housing market is analysed for the first time. This paper develops a comprehensive empirical approach to assess the equilibrium-housing price in Fiji.
Keywords
Acknowledgements
The authors acknowledge the funding support for this research by the University of the South Pacific (Research Office).
Citation
Khan, M., Singh, R., Patel, A. and Jain, D.K. (2021), "An examination of house price bubble in the real estate sector: the case of a small island economy – Fiji", International Journal of Housing Markets and Analysis, Vol. 14 No. 4, pp. 745-758. https://doi.org/10.1108/IJHMA-05-2020-0056
Publisher
:Emerald Publishing Limited
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