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Article
Publication date: 15 June 2023

Woon Weng Wong, Kwabena Mintah, Peng Yew Wong and Kingsley Baako

This study aims to examine the impact of lending liquidity on house prices especially during black swan events such as the Global Financial Crisis of 2007–08 and COVID-19…

Abstract

Purpose

This study aims to examine the impact of lending liquidity on house prices especially during black swan events such as the Global Financial Crisis of 2007–08 and COVID-19. Homeownership is an important goal for many, and house prices are a significant driver of household wealth and the wider economy. This study argues that excessive liquidity from central banks may be driving house price increases, despite negative changes to fundamental drivers. This study contributes to the literature by examining lending liquidity as a driver of house prices and evaluating the efficacy of fiscal policies aimed at boosting liquidity during black swan events.

Design/methodology/approach

This study aims to examine the impact of quantitative easing on Australian house prices during back swan events using data from 2004 to 2021. All macroeconomic and financial data are freely available from official sources such as the Australian Bureau of Statistics and the nation's Central Bank. Methodology wise, given the problematic nature of the data such as a mixed order of integration and the possibility of cointegration among some of the I(1) variables, the auto-regressive distributed lag model was selected given its flexibility and relative lack of assumptions.

Findings

The Australian housing market continued to perform well during the COVID-19 pandemic, with the house price index reaching an unprecedented high towards the end of 2021. Research using data from 2004 to 2021 found a consistent positive relationship between house prices and housing finance, as well as population growth and the value of work commenced on residential properties. Other traditional drivers such as the unemployment rate, economic activity, stock prices and income levels were found to be less significant. This study suggests that quantitative easing implemented during the pandemic played a significant role in the housing market's performance.

Originality/value

Given the severity of COVID-19, policymakers have responded with fiscal and monetary measures that are unprecedented in scale and scope. The full implications of these responses are yet to be completely understood. In Australia, the policy interest rate was reduced to a historic low of 0.1%. In the following periods house prices appreciated by over 20%. The efficacy of quantitative easing and associated fiscal policies aimed at boosting liquidity to mitigate the impact of black swan events such as the pandemic has yet to be tested empirically. This study aims to address that paucity in literature by providing such evidence.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 5 January 2024

Ken Farnes, Neville Hurst, Woon-Weng Wong and Sara Wilkinson

The purpose of this study was to explore and critique the benefits and disbenefits that transport orientated development (TOD) brings to neighbourhoods in proximity to public…

Abstract

Purpose

The purpose of this study was to explore and critique the benefits and disbenefits that transport orientated development (TOD) brings to neighbourhoods in proximity to public transport hubs.

Design/methodology/approach

This is an exploratory study that may also be described as a rapid review that aims to provide coverage of the available literature in a systematic process that is simplified to produce information in a timely manner. Due to the relatively small number of available studies from peer-reviewed sources, the variety of methods and data used and the constrained time available for this study, the study did not immediately lend itself to a more thorough systematic literature review.

Findings

The literature shows the discourse on TOD upholds its promise to create a high-density mixed-use walkable neighbourhood supported by transport infrastructure, increasing accessibility, minimising vehicle dependency, reducing traffic congestion, moderating urban sprawl and reducing pollution. There are few articles on the negative aspects of TOD, particularly concerning social exclusion, crime, sustainability and concerns about gentrification of neighbourhoods.

Research limitations/implications

The study did not immediately lend itself to a more thorough systematic literature review due to the relatively small number of available studies, the variety of methods and data used and the constrained time available for this study.

Originality/value

This study allows social investigators, policymakers and developers understand the benefits and disbenefits of TOD including policy implications regarding potential criminogenic factors.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

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