Ripple effects of house prices : considering spatial correlations in geography and demography

Ma, Le and Liu, Chunlu 2013, Ripple effects of house prices : considering spatial correlations in geography and demography, International journal of housing markets and analysis, vol. 6, no. 3, pp. 284-299.

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Title Ripple effects of house prices : considering spatial correlations in geography and demography
Author(s) Ma, Le
Liu, Chunlu
Journal name International journal of housing markets and analysis
Volume number 6
Issue number 3
Start page 284
End page 299
Total pages 16
Publisher Emerald Group Publishing Limited
Place of publication Bingley, England
Publication date 2013
ISSN 1753-8270
1753-8289
Keyword(s) Australia
cities
demographic structure
demography
geography
house price
housing
prices
pricing
ripple effects
spatial vector autoregression models
Summary Purpose: Studies into ripple effects have previously focused on the interconnections between house price movements across cities over space and time. These interconnections were widely investigated in previous research using vector autoregression models. However, the effects generated from spatial information could not be captured by conventional vector autoregression models. This research aimed to incorporate spatial lags into a vector autoregression model to illustrate spatial-temporal interconnections between house price movements across the Australian capital cities. Design/methodology/approach: Geographic and demographic correlations were captured by assessing geographic distances and demographic structures between each pair of cities, respectively. Development scales of the housing market were also used to adjust spatial weights. Impulse response functions based on the estimated SpVAR model were further carried out to illustrate the ripple effects. Findings: The results confirmed spatial correlations exist in housing price dynamics in the Australian capital cities. The spatial correlations are dependent more on the geographic rather than the demographic information. Originality/value: This research investigated the spatial heterogeneity and autocorrelations of regional house prices within the context of demographic and geographic information. A spatial vector autoregression model was developed based on the demographic and geographic distance. The temporal and spatial effects on house prices in Australian capital cities were then depicted.
Language eng
Field of Research 120201 Building Construction Management and Project Planning
Socio Economic Objective 870503 Residential Building Management and Services
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30055303

Document type: Journal Article
Collection: School of Architecture and Built Environment
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