Purpose - The purpose of this paper is to analyse the interdependencies of the house price growth rates in Australian capital cities. Design/methodology/approach - A vector autoregression model and variance decomposition are introduced to estimate and interpret the interdependences among the growth rates of regional house prices in Australia. Findings - The results suggest the eight capital cities can be divided into three groups: Sydney and Melbourne; Canberra, Adelaide and Brisbane; and Hobart, Perth and Darwin. Originality/value - Based on the structural vector autoregression model, this research develops an innovative interdependence analysis approach of regional house prices based on a variance decomposition method.
History
Journal
International journal of housing markets and analysis
Volume
2
Pagination
218-232
Location
Bingley, England
ISSN
1753-8270
eISSN
1753-8289
Language
eng
Notes
Reproduced with the kind permission of the copyright owner.