Property markets and financial stability

BIS Papers No 64
March 2012

The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) jointly organised a workshop on property markets and financial stability in Singapore on 5 September 2011. The workshop aimed to bring together academics and researchers at central banks, regulatory agencies and international organisations to present and discuss ongoing theoretical and empirical work in the field. In response to their call for papers, the organisers received 67 submissions from central banks, public agencies, international organisations and academic institutions. From these, a paper selection committee comprising staff of the BIS, the MAS and academia chose seven papers organised around the following four themes: (1) lessons from the crisis; (2) house price assessment; (3) housing booms and busts; and (4) property, credit and markets.

All in all, 39 participants took part, including central bank economists as well as academics from Asia and the Pacific, Europe and the United States. Assistant Managing Director Andrew Khoo of the MAS and Frank Packer, Head of Financial Stability and Markets for Asia and the Pacific of the BIS, delivered the opening remarks. Professor Timothy Riddiough at the University of Wisconsin gave a keynote speech. This volume is a collection of the opening remarks, the keynote speech, revised versions of all the papers presented during the workshop, as well as discussant remarks on these papers.

JEL classification: E30, E44, E58, R21, R31. 

 

Welcome remarks

Welcome remarks
Welcome remarks

Keynote speech

The first sub-prime mortgage crisis and its aftermath

Session contributions

Commercial real estate loan performance at failed US banks
Discussant remarks on Andrew Felton and Joseph B Nichols' paper "Commercial real estate loan performance at failed US banks"
House prices from magazines, realtors, and the Land Registry
Discussant remarks on Chihiro Shimizu, Kiyohiko G Nishimura and Tsutomu Watanabe's paper "House prices from magazines, realtors, and the Land Registry"
A cluster analysis approach to examining Singapore's property market
Discussant remarks on Chan Lily, Ng Heng Tiong and Rishi Ramchand's paper "A clustering analysis approach to examining Singapore's property market"
Dealing with real estate booms and busts
Discussant remarks on Deniz Igan's paper "Dealing with real estate booms and busts"
Capital inflows, financial innovation and housing booms
Discussant remarks on Filipa Sá, Pascal Towbin and Tomasz Wieladek's paper "Capital inflows, financial innovation and housing booms"
Credit standards and the bubble in US house prices: new econometric evidence
Discussant remarks on John V Duca, John Muellbauer and Anthony Murphy's paper "Credit standards and the bubble in US house prices: new econometric evidence"
Credit conditions and the real economy: the elephant in the room
Discussant remarks on John Muellbauer and David M Williams' paper "Credit conditions and the real economy: the elephant in the room"