Abstract
We argue that shocks to a housing market are transmitted through the hierarchy of quality tiers within a housing market. The result is the prediction of waves of house price changes accompanied by changes in transaction volume. Our study is related to existing models of spatial ripple effects across housing markets. The data are from the Hong Kong housing market. The findings from Granger causality tests strongly support the argument that domino effects within a single housing market occur in response to external shocks.
| Original language | English |
|---|---|
| Pages (from-to) | 299-316 |
| Number of pages | 18 |
| Journal | The Journal of Real Estate Finance and Economics |
| Volume | 37 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 1 Nov 2008 |
Bibliographical note
The authors are grateful for the comments and suggestions received from two anonymous referees, Terence Chong, Daniel Cheung, and Jimmy Ran. The authors wish to thank Gary Wong for research assistance.Funding
This research was supported by two Competitive Earmarked Research Grants (No. LU3008/00H and LU3110/03H) from the RGC of Hong Kong SAR Government. However, we are responsible for all remaining errors of this paper.