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An investigation of the synchronization in global house prices

An investigation of the synchronization in global house prices The purpose of this paper to provide a discussion of the empirical evidence and contributing factors of the synchronization of house prices globally.Design/methodology/approachThe author reviewed the main studies on house price synchronization and conducted an empirical analysis using OECD house price indices. A discussion of the contributing factors of synchronization, with a focus on the demand and supply dimensions is provided, and synchronization across both countries and cities is examined.FindingsHousing markets globally have become more synchronized; this is particularly clear for cities. The sustained demand for places that are attractive for financial motives and for lifestyle and sometimes climate along with the fact that such places tend to be supply-constrained is likely to lead to more synchronization across markets.Practical implicationsThe conclusions are important for investors seeking to diversify their housing holdings internationally. The discussion should also benefit policy-makers.Originality/valueTo date, very scarce evidence exists on the synchronization of house prices globally. By surveying the results contained in previous studies and providing a thorough discussion of the possible drivers of house price synchronization, this study contributes to a better understanding of this important topic. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of European Real Estate Research Emerald Publishing

An investigation of the synchronization in global house prices

Journal of European Real Estate Research , Volume 13 (1): 11 – Apr 22, 2020

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References (31)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1753-9269
DOI
10.1108/jerer-12-2019-0050
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper to provide a discussion of the empirical evidence and contributing factors of the synchronization of house prices globally.Design/methodology/approachThe author reviewed the main studies on house price synchronization and conducted an empirical analysis using OECD house price indices. A discussion of the contributing factors of synchronization, with a focus on the demand and supply dimensions is provided, and synchronization across both countries and cities is examined.FindingsHousing markets globally have become more synchronized; this is particularly clear for cities. The sustained demand for places that are attractive for financial motives and for lifestyle and sometimes climate along with the fact that such places tend to be supply-constrained is likely to lead to more synchronization across markets.Practical implicationsThe conclusions are important for investors seeking to diversify their housing holdings internationally. The discussion should also benefit policy-makers.Originality/valueTo date, very scarce evidence exists on the synchronization of house prices globally. By surveying the results contained in previous studies and providing a thorough discussion of the possible drivers of house price synchronization, this study contributes to a better understanding of this important topic.

Journal

Journal of European Real Estate ResearchEmerald Publishing

Published: Apr 22, 2020

Keywords: Synchronization; Housing markets; House prices; Global liquidity; Housing supply; Magnet cities

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