Prior research supports the proposition that house price diffusion shows a ripple effect along the spatial dimension. That is, house price changes in one region would reflect in subsequent house price changes in other regions, showing certain linkages among regions. Using the vector autoregression model and the impulse response function, this study investigates house price diffusion among Australia's state capital cities, examining the response of one market to the innovation of other markets and determining the lagged terms for the maximum absolute value of the other markets' responses. The results show that the most important subnational markets in Australia do not point to Sydney, rather towards Canberra and Hobart, while the Darwin market plays a role of buffer. The safest markets are Sydney and Melbourne. This study helps to predict house price movement trends in eight capital cities.
History
Journal
International journal of strategic property management
Volume
12
Pagination
237-250
Location
Vilnius, Lithuania
Open access
Yes
ISSN
1648-715X
eISSN
1648-9179
Language
eng
Notes
Reproduced with the kind permission of the copyright owner.
Publication classification
C1 Refereed article in a scholarly journal, C Journal article