The impact of interest rates upon housing prices: an empirical study of Hong Kong’s market

2003 ◽  
Vol 21 (2) ◽  
pp. 153-170 ◽  
Author(s):  
Tak Yun Joe Wong ◽  
Chi Man Eddie Hui ◽  
William Seabrooke
Keyword(s):  
Empirical Study ◽  
Interest Rates ◽  
Housing Prices ◽  
The Impact

scholarly journals Interest Rate Liberalization and Commercial Banks Profitability: Evidence from China

2020 ◽  
Vol 12 (5) ◽  
pp. 90
Author(s):  
Lai Ying
Keyword(s):  
Interest Rate ◽  
Empirical Study ◽  
Interest Rates ◽  
Commercial Banks ◽  
Well Being ◽  
Key Factors ◽  
Interest Rate Liberalization ◽  
Production Growth ◽  
The Future ◽  
The Impact

Enhanced profitability is an important guarantee to improve the well-being of people and better exert the functions of commercial banks in promoting economic, social and production growth on the premise of the existence and development of commercial banks. Interest rate liberalization is one of the key factors which can affect the profitability of commercial banks. An empirical study is thus carried out on 16 Commercial banks (from 2007 to 2018) to analyze the impact of interest rate liberalization on the profitability of commercial banks. We draw main conclusions from this study: (1) the progress of interest rate liberalization has improved the profitability of banks. (2) This kind of impact is inverted U-shaped, that is, with the advancement of interest rate liberalization, the impact will be reversed in the future. (3) For banks of different sizes, the impact is different. Specifically, small and medium-sized banks are more sensitive to the liberalization of interest rates, while for larger banks, the impact is not strong.

The Impact of Neighborhood Characteristics on Housing Prices-An Application of Hierarchical Linear Modeling

2012 ◽  
Vol 1 (2) ◽  
pp. 31-44
Author(s):  
Lee Chun Chang ◽  
Hui-Yu Lin
Keyword(s):  
Empirical Study ◽  
Hierarchical Linear Modeling ◽  
House Prices ◽  
Housing Prices ◽  
Neighborhood Characteristics ◽  
Linear Modeling ◽  
Hierarchical Linear Modelling ◽  
Neighborhood Characteristic ◽  
Linear Modelling ◽  
The Impact

Housing data are of a nested nature as houses are nested in a village, a town, or a county. This study thus applies HLM (hierarchical linear modelling) in an empirical study by adding neighborhood characteristic variables into the model for consideration. Using the housing data of 31 neighborhoods in the Taipei area as analysis samples and three HLM sub-models, this study discusses the impact of neighborhood characteristics on house prices. The empirical results indicate that the impact of various neighborhood characteristics on average housing prices is different and that the impact of house characteristics on house prices is also moderated by neighborhood characteristics.

scholarly journals Impacts of shopping malls on apartment prices: the case of Stockholm

2020 ◽  
Vol 5 ◽  
pp. 29-48
Author(s):  
Mats Wilhelmsson ◽  
Runfeng Long
Keyword(s):  
Empirical Study ◽  
Inverse Relationship ◽  
Housing Prices ◽  
Shopping Mall ◽  
Hedonic Model ◽  
Price Premium ◽  
Shopping Malls ◽  
The Impact ◽  
The Relationship ◽  
Over Time

Shopping malls, as an important type of commercial facilities, are growing dramatically. They have gradually become one of the most dominant factors that can influence people's daily life as well as a city's economic development. People's willingness to pay for dwellings is also primarily associated with the surrounding commercial layout. Hence, it is of interest to find out more from a quantitative perspective on the relationship between shopping malls and housing prices. This study aims to analyze how the prices of condominiums will be affected by the proximity of shopping malls. Two aspects are considered and examined in the empirical study, namely a proximity to the shopping mall, and the number of shopping malls within 3 kilometers radius. We try to examine if there is any price premium for those apartments near the shopping mall or with more shopping malls in the neighborhood. In this empirical study, 36 shopping malls in different locations in the county of Stockholm, Sweden, is utilized. The sample of transactions consists of 336,914 apartments. By using regression analysis, based on the traditional hedonic model, the results show that there is an inverse relationship between the apartment prices and its distance from the shopping mall while the number of shopping malls is positively correlated with apartment prices. However, the impact has declined over time.

International Real Estate Review

2015 ◽  
Vol 18 (2) ◽  
pp. 217-240
Author(s):  
Weida Kuang ◽  
◽  
Peng Liu ◽  
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
House Prices ◽  
Supply And Demand ◽  
Housing Prices ◽  
Consumer Price Index ◽  
Housing Price ◽  
Price Increases ◽  
Relationship Of ◽  
The Impact

In recent years, housing prices and inflation have been growing constantly in China. Higher house prices and higher inflation affect both household consumption and economic growth. We have developed a four-sector general equilibrium model of consumers, developers, firms, and the central bank to illustrate the relationship of house prices with inflation. The theoretical model demonstrates that house prices and inflation are positively correlated and endogenously determined. By using panel databases of 35 major cities in China during the period of 1996-2010, we find that the association between house prices and inflation is asymmetric. The impact of inflation on housing prices is greater than that of housing prices on inflation, which implies that housing prices effectively hedge inflation. Secondly, household income positively affects housing prices, but interest rates negatively influence housing prices. Accordingly, to curb soaring housing prices, policymakers not only should balance supply and demand, but also control for inflation. Thirdly, economic growth has less of an impact on inflation than housing prices. Hence, abnormal housing price increases are more likely to exacerbate inflation than economic growth. In addition, housing prices have a greater impact on inflation than rental prices, albeit the latter is a component of the consumer price index (CPI). Finally, money supply has much greater effects on inflation than housing prices and economic growth.

scholarly journals Impact of financialization in transformation of urban environment and example of settlement Detelinara in Novi Sad

2017 ◽  
Vol 15 (3) ◽  
pp. 387-402
Author(s):  
Katarina Stojanovic ◽  
Alpar Losonc
Keyword(s):  
Interest Rates ◽  
Housing Prices ◽  
World Market ◽  
Middle Income ◽  
The Real Estate ◽  
Residential Neighborhood ◽  
The Status ◽  
The Difference ◽  
Novi Sad ◽  
The Impact

The phenomenon of excessive investment, which usually goes into decline with excessive financialisation of certain economic domains or certain geographic areas, among others, marked the period after September 2008. Financialization is a term that is related to the change in the status of the financial sphere since the early seventies. ?t this time, movement of huge amounts of financial mass appeared on the world market. The difference between the average housing prices and middle-income income is steadily increasing, causing an increase in demand for housing. Therefore, the real estate prices rose enormously although rents stagnated. High interest rates and unemployment have led to a massive loss of housing those who were unable to repay loans. Financialization is still fueled by cheap money, so that the poorer turned to the credit market, too. Since this is a global phenomenon reflected in our region, it is presented on the example of the block in a residential neighborhood Stara Detelinara in Novi Sad. This paper analyzes the impact of a particular type of transformation in change of the physical and social character.

scholarly journals Housing Prices at the Time of QEs in California: Effect of Mortgage Rates

2017 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Yalan Feng ◽  
Donald C. Keenan ◽  
Taewon Kim ◽  
Daniel C. Lee
Keyword(s):  
Interest Rates ◽  
Housing Market ◽  
Great Recession ◽  
Housing Prices ◽  
Quantitative Easing ◽  
The Great Recession ◽  
Mortgage Rates ◽  
Run Up ◽  
The Impact ◽  
The Relationship

In this paper we look at the impact of mortgage rates on California’s housing prices during the Great Recession when the quantitative easing (QE) programs were implemented. We find that the relationship between mortgage rates and housing prices is not strong and it becomes weaker, the closer the period gets to the Great Recession. Our analysis confirms some of the existing literature on the relationship between interest rates and housing prices; that in the boom-bust housing market cycles, interest rates do not play a major role one would expect in determining the demand for housing. Our analysis shows that, even as interest rates were high in the run up to the housing market peak in 2007, housing prices kept going up; and that after the bubble burst, even as rates were kept low, housing prices did not start recovering until 2011.

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