Determinants of house prices in nine Asia-Pacific economies

by Eloisa T Glindro, Tientip Subhanij, Jessica Szeto and Haibin Zhu, BIS Working Papers, no 263
01 October 2008
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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.