Determinants and Sustainability of House Prices: The Case of Shanghai, China

Clicks: 394
ID: 53185
2015
Free PDF
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal
Star

Ranked #15 of 275 articles by views in sustainability

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 275 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Sign in to mint
Abstract
Recent housing policies include measures for home purchase control and shanty town redevelopment. This study proposes sustainable pricing, in that the long-run equilibrium price is determined by the fundamentals of house prices. We argue that changes in CPI might have led to rapidly growing house prices and rather high price levels. We investigate the long-run or short-run impacts of new commodity housing completions, transacted square meters of commodity housing, and CPI for house prices in Shanghai. We adopt monthly data for the period of 2005–2010. We test for unit roots using both the ADF and PP techniques and structural breaks using both the Zivot-Andrews (Model B) and Perron (Model C) methods. Considering Cheung-Lai and Reinsel–Ahn finite-sample corrections, the results suggest a long-run equilibrium. Housing completions negatively impact house prices in the short run. A positive volume-price relationship is suggested. Housing sales affect house prices in the short run but not vice versa. Hence, the empirical evidence supports the search model. In addition, CPI is strongly exogenous with respect to the long-run relationship and thus is a long-term determinant of house prices. CPI also positively and drastically influences house prices in the short run. Therefore, a reduction in inflation rate could stabilize house prices, increasing the chances of sustainable prices in the future.
Reference Key
zou2015determinantssustainability Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Zou, Gao Lu;Chau, Kwong Wing;
Journal sustainability
Year 2015
DOI
DOI not found
URL
http://www.mdpi.com/2071-1050/7/4/4524
Keywords
Engineering (General). Civil engineering (General) Technology environmental effects of industries and plants renewable energy sources environmental sciences geography (general) economics as a science finance social sciences building construction management. industrial management applied optics. photonics transportation engineering urbanization. city and country

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

Comments

No comments yet. Be the first to comment on this article.