An Intra-City Analysis of House Price Convergence and Spatial Dependence

AbstractThe aim of this study is to assess whether significant spillovers exist among house price convergence clubs in the Polish housing market. This paper is a continuation of my previous research on house price convergence in Poland. In order to achieve the defined goal, VAR modelling was used. Based on the results of the VAR model, impulse response functions (IRFs) and the Spillover Index were calculated. The obtained results indicate that spillovers in the Polish housing market are strong. The relationships are observed both inside the primary and secondary markets and between them. In particular, a very powerful influence is exerted from a club of cities from the primary market, consisting of Cracow, Warsaw, Gdańsk, Poznań, Rzeszów and Wrocław, on the remaining identified house price convergence clubs.

Download Full-text

Tests for spatial dependence and heterogeneity in spatially autoregressive varying coefficient models with application to Boston house price analysis

Regional Science and Urban Economics ◽

10.1016/j.regsciurbeco.2019.103470 ◽

2019 ◽

Vol 79 ◽

pp. 103470 ◽

Cited By ~ 1

Author(s):

Deng-Kui Li ◽

Chang-Lin Mei ◽

Ning Wang

Keyword(s):

Spatial Dependence ◽

House Price ◽

Varying Coefficient Models ◽

Varying Coefficient ◽

Price Analysis

Download Full-text

International Real Estate Review

International Real Estate Review ◽

10.53383/100211 ◽

2015 ◽

Vol 18 (4) ◽

pp. 503-521

Author(s):

Le Ma ◽

◽

Chunlu Liu ◽

Keyword(s):

Spatial Heterogeneity ◽

House Prices ◽

House Price ◽

Urban Housing ◽

Price Convergence ◽

Capital Cities ◽

Regression Methods ◽

Long Run ◽

Spatio Temporal ◽

Long Run Equilibrium

In order to explore the long-run equilibrium in the house prices of different cities, studies on house price convergence have been conducted by a number of researchers. However, the majority of previous studies have neglected the effects of spatial heterogeneity and autocorrelation on house prices. This research improves on the investigation of house price convergence by developing a spatio-temporal autoregressive model based on a framework of panel regression methods. Both spatial heterogeneity and autocorrelation of house prices in different cities are taken into account. Geographical distance and the scale of development of the urban housing market are used to construct temporal varying spatial measurements. The spatio-temporal model is then applied to investigate the long-run equilibrium in the house prices of Australian capital cities. The results confirm that house prices in Sydney approach a steady state in the long run, whereas house prices in Brisbane, Canberra, Melbourne and Perth are able to do with lower confidence. However, little evidence supports the existence of long-run equilibrium in the house prices of Adelaide, Darwin and Hobart.

Download Full-text