Determinants of house prices in nine Asia-Pacific economies
Abstract:
The paper investigates the characteristics of house price dynamics and the role of institutional features in nine Asia-Pacific economies during 1993-2006. On average, house prices tend to be more volatile in markets with lower supply elasticity and a more flexible business environment. At the national level, the current run-up in house prices mainly reflects adjustment to improved fundamentals rather than speculative housing bubbles. However, evidence of bubbles does exist in some market segments.
The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS or its member central banks.