An Empirical Research on the Relationship between Real Estate Prices and Inflation

2011 ◽  
Vol 55-57 ◽  
pp. 1992-1996
Author(s):  
Tie Qun Li
Keyword(s):  
Real Estate ◽  
Stock Prices ◽  
Test Analysis ◽  
Social Demand ◽  
The Real Estate ◽  
Key Factor ◽  
Negative Effect ◽  
Labor Service ◽  
Real Estate Prices ◽  
The Relationship

The former researches referring to inflation and real estate prices concentrated mainly on the stock prices rather than the real estate prices. Owing to the enlarging ratio of real estate industry in national economy with each passing day, as well as the overheating real estate prices in recent years, the relationship between real estate prices and inflation is particularly vital to the monetary policy making for the monetary authorities. According to the test analysis of data from 2001 to 2009, it is found that real estate prices is Granger Cause of inflation while inflation is not the Granger Cause of real estate prices in this paper. Through the Effects of Wealth, Credit and Tobin, real estate prices drive the growth of social consumption and investments and expand the total social demand which possess an positive effect on inflation; nevertheless the rising of real estate prices causes the rising of currency for real estate purchasing, which, under the circumstance of that currency supply remains, will inevitably bring about the reduction of currency for other consumption and investments and restrain the total social demand which would mean a suppression of continuous rising of prices of other commodity and labor service. All these show that real estate also has a negative effect on inflation. The cancellations between the two effects make the long-term influence real estate bearing on inflation is not obvious. The experimental results indicate that when the price of real estate rises 1%, inflation only rises 0.058%. Consequently, a strict controlling of the amount of money issued is the key factor for keeping the over rapid rising of real estate prices from leading to inflation.

Real estate prices and stock market in Germany: analysis based on hedonic price index

2019 ◽  
Vol 12 (4) ◽  
pp. 687-707 ◽  
Author(s):  
Korhan Gokmenoglu ◽  
Siamand Hesami
Keyword(s):  
Real Estate ◽  
Stock Market ◽  
Stock Prices ◽  
Price Index ◽  
Real Estate Market ◽  
Hedonic Price ◽  
Content Type ◽  
Long Run ◽  
Real Estate Prices ◽  
The Relationship

PurposeReal estate and stocks are two major asset types in an investor’s portfolio. Therefore, this paper aims to investigate the relationship between these two markets to provide a valuable insight into the process of portfolio optimization and security selection.Design/methodology/approachThis study examines the long-run relationship between residential real estate prices and stock market index in the case of Germany for the period of 2005-2017 by applying time series econometrics techniques. To this aim, this study uses Hedonic House Price Index as a proxy for real estate prices and DAX30 as a proxy for stock prices. Moreover, three additional variables, namely, consumer confidence, credit availability and supply of mortgage loans, are incorporated as control variables to assess the robustness of the results.FindingsObtained empirical results indicate a long-run relationship between stock prices and real estate prices which suggests that in long-run, there is no diversification benefit from allocating stock and real estate assets in a portfolio. This finding is especially important for long-term investors such as pension funds.Originality/valueTo the authors’ best knowledge, this is the first study that empirically investigates the relationship between the real estate market and stock prices using the Hedonic Price Index for the case of Germany.

scholarly journals The Dynamic Relationship Between Stock and Real Estate Prices in Kuwait

2019 ◽  
Vol 11 (5) ◽  
pp. 30
Author(s):  
Sadeq J. Abul
Keyword(s):  
Real Estate ◽  
Stock Prices ◽  
Stock Markets ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
The Real Estate ◽  
Dynamic Relationship ◽  
Emerging Stock Markets ◽  
The State Of Kuwait ◽  
Real Estate Prices

This paper examines empirically the dynamic relationship existing between the stock and real estate markets in the State of Kuwait for the period from January 2007 to December 2017. The main features of the real estate market in Kuwait are reviewed, and two indices are constructed to measure the activity of the residential real estate (land and houses) and multi-apartment buildings in the Kuwaiti real-estate market. The empirical analysis employs the main proper tests, such as the Johansen (1998) cointegration test and Vector Error Correction Model (VECM). These two tests confirm the long- and short-term association between Kuwaiti stock prices and multi-apartment building prices only, while no evidence of such a relationship is found for the residential real estate (land and houses) prices. This paper extends the literature available on the emerging stock markets, as the Kuwaiti Stock Market is one of the oldest stock markets in the member countries of the Gulf Cooperation Council (GCC). In addition, the results obtained in this paper have useful implications for academics and policy-makers in Kuwait.

scholarly journals ANALISIS PENGARUH FAKTOR INTERNAL DAN EKSTERNAL TERHADAP HARGA SAHAM (Studi Kasus pada Perusahaan Sektor Property dan Real Estate yang Terdaftar di BEI)

2020 ◽  
Vol 4 (4) ◽  
Author(s):  
Bella Anindita Apsari
Keyword(s):  
Exchange Rate ◽  
Real Estate ◽  
Stock Prices ◽  
Significant Positive Effect ◽  
Return On Equity ◽  
The Real ◽  
The Real Estate ◽  
Negative Effect ◽  
Estate Property ◽  
Positive Effect

The existence of capital market in Indonesia can be seen from the number of investors who invest their shares in property and real estate sectors. From the perspective of the macro economy, the property sector has a very broad scope of business so that the stimulation of business property in turn will affect the economic growth and work opportunities. Property also be an important indicator of economic health of a country. In this research, are considered internal factors that affect stock prices and the real estate property sector is to look at financial ratios such as the ratio of Return On Equity (ROE) dan Earning Per Share (EPS) while external factors were used in this study is variable exchange rate and BI Rate This study uses 8 company property and real estate sector with the best issuer ratings, with a study period of years 2010-2014 (annual period). The technique analysis panel regression. The results of this research is the Return On Equity (ROE) have a a significant negative effect on stock prices and the real estate property sector, Earning Per Share (EPS) have a a significant positive effect on stock prices and the real estate property sector, exchange rate have a not significant positive effect on stock prices and the real estate property sector, BI Rate have a a not significant negative effect on stock prices and the real estate property sector.

scholarly journals Analysis on the Relationship among Industrial Structure, Structure of Migrant Population and Real Estate Prices

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Zhenzhen Liu
Keyword(s):  
Population Structure ◽  
Real Estate ◽  
Industrial Structure ◽  
Housing Prices ◽  
Migrant Population ◽  
The Real Estate ◽  
Structure Of Population ◽  
Real Estate Prices ◽  
The Relationship ◽  
Evident Relationship

With the urban development, the industrial structure and the structure of population show a mutually influential and very complicated relationship, and the industrial structure and the structure of population show an evident relationship with the real estate. The structure of population will have an influence on the industrial structure, and the industrial structure will have an effect on housing prices. So changes in the population structure will also have an indirect effect on the changes of real estate prices. This paper analyzes the relationship among industrial structure, structure of migrant population and real estate prices.

scholarly journals The Impacts in Real Estate of Landscape Values: Evidence from Tuscany (Italy)

2021 ◽  
Vol 13 (4) ◽  
pp. 2236
Author(s):  
Francesco Riccioli ◽  
Roberto Fratini ◽  
Fabio Boncinelli
Keyword(s):  
Real Estate ◽  
House Prices ◽  
Spatial Econometric ◽  
The Real ◽  
The Real Estate ◽  
Landscape Values ◽  
Individual Perception ◽  
Real Estate Prices ◽  
The Aesthetic ◽  
The Individual

Using spatial econometric techniques and local spatial statistics, this study explores the relationships between the real estate values in Tuscany with the individual perception of satisfaction by landscape types. The analysis includes the usual territorial variables such as proximity to urban centres and roads. The landscape values are measured through a sample of respondents who expressed their aesthetic-visual perceptions of different types of land use. Results from a multivariate local Geary highlight that house prices are not spatial independent and that between the variables included in the analysis there is mainly a positive correlation. Specifically, the findings demonstrate a significant spatial dependence in real estate prices. The aesthetic values influence the real estate price throughout more a spatial indirect effect rather than the direct effect. Practically, house prices in specific areas are more influenced by aspects such as proximity to essential services. The results seem to show to live close to highly aesthetic environments not in these environments. The results relating to the distance from the main roads, however, seem counterintuitive. This result probably depends on the evidence that these areas suffer from greater traffic jam or pollution or they are preferred for alternative uses such as for locating industrial plants or big shopping centres rather than residential use. Therefore, these effects decrease house prices.

scholarly journals Evaluation of the Applicability of Statistical Methods in Studies on Price Dynamics on the Real Estate Market

2013 ◽  
Vol 21 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Sebastian Kokot ◽  
Marcin Bas
Keyword(s):  
Real Estate ◽  
Traditional Approach ◽  
Real Estate Market ◽  
Price Dynamics ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
Time Period ◽  
The Real Estate Market ◽  
Real Estate Prices

Abstract The specific character of the real estate market is the reason why observations of transaction prices seen as statistical variables are taken in a non-standard way. In the traditional approach each time period or specific moments of time are attributed with one observation of a studied variable per one object. In the case of the real estate market, this is not possible since transactions relate to different objects, i.e., properties, and occur at irregular, or even random, moments. This is why traditional methods used to examine the dynamics of economic phenomena must be adapted to specific conditions on the real estate market. Keeping that in mind, the aim of this paper is to adapt classical statistical examination methods of dynamics to specific conditions of the real estate market followed by the actual examination of the dynamics of real estate prices in three sub-segments of the housing market in Szczecin. On its basis, the authors evaluate various methods of examining real estate price dynamics in terms of their applicability in real estate appraisal procedures and, in a broader perspective, present characteristic phenomena that can be observed on the real estate market.

Career choice of real estate students in Nigeria

2019 ◽  
Vol 37 (1) ◽  
pp. 154-176 ◽  
Author(s):  
Timothy Oluwafemi Ayodele
Keyword(s):  
Real Estate ◽  
Career Choice ◽  
Third Party ◽  
Southwestern Nigeria ◽  
Test Analysis ◽  
Content Type ◽  
The Real Estate ◽  
Factors Influencing ◽  
Real Estate Sector ◽  
Career Preferences

Purpose The purpose of this paper is to examine the career preferences of real estate students and the predisposing factors influencing the choice of career. The study also analysed the gender and socioeconomic variations with respect to the career preferences and factors influencing the career choice of real estate students in an emergent market like Nigeria. Design/methodology/approach Closed-ended questionnaires were administered on final year real estate students in the three Federal universities offering real estate in Southwestern Nigeria. Data were analysed using frequency counts, percentages, mean ranking, independent t-test, analysis of variance and correlation analysis. Findings The findings showed that the predominant individual factors influencing career choice of real estate students were personal career interest, the magnitude of initial salary, future financial prospects and job security. Furthermore, while intrinsic and economic/financial factors were the major themes influencing respondents’ career choice, the influence of a third party was less a likely determinant. Analysis of gender differences showed that there was a statistical difference between the male and female respondents with respect to the intrinsic and career exposure factors. Research limitations/implications The study has implications for real estate students, career advisers/academic counsellors, organisations employing the services of real estate graduates, and educational institutions and policy stakeholders in the real estate sector. The study also has implication for real estate professional bodies in Nigeria and other emergent markets. Originality/value This is perhaps the first attempt that examined the factors influencing the career choice of real estate students in an emergent market like Nigeria, especially from the perspectives of gender and socioeconomic variations.

scholarly journals Asymmetric Macroeconomic Shocks and Asset Price Behaviors in Selected African Countries

2021 ◽  
Vol 11 (2) ◽  
pp. 90
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Ogunleye Edward Oladipo
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Asset Prices ◽  
Asset Price ◽  
Panel Cointegration ◽  
African Countries ◽  
Vector Autoregressive ◽  
Macroeconomic Variables ◽  
Real Estate Prices ◽  
The Relationship

This study examines the relationship between Asset prices (Stock and Real estate prices) and Macroeconomic variables in four selected African countries. The study employs the Westerlund Error Correction Based Panel Cointegration test and Eight-variable Structural Vector Autoregressive model to examine the relationship between asset prices and macroeconomic variables. Findings from the study confirm that no long-run relationship exists between both Asset prices and macroeconomic variables. The study equally reveals that portfolio diversification benefits of both stock and real estate markets are more pronounced in the period of a boom than the recession period in Africa. The results also show that GDP growth rate shock exerts a significant impact on both asset prices during expansion and recession periods. The study reveals that foreign interest rates and World oil price shocks are better predictors of both stock and real estate prices during the crisis period than in the expansion period.

scholarly journals Use of Statistical Models for Simulating Transactions on the Real Estate Market

2015 ◽  
Vol 23 (2) ◽  
pp. 102-111 ◽  
Author(s):  
Radosław Cellmer ◽  
Katarzyna Szczepankowska
Keyword(s):  
Probability Distribution ◽  
Real Estate ◽  
Statistical Models ◽  
Real Estate Market ◽  
Model Parameters ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
The Real Estate Market ◽  
Real Estate Prices

Abstract The regularities and relations between real estate prices and the factors that shape them may be presented in the form of statistical models, thanks to which the diagnosis and prediction of prices is possible. A formal description of empirical observation presented in the form of regressive models also offers a possibility for creating certain phenomena in a virtual dimension. Market phenomena cannot be fully described with the use of determinist models, which clarify only a part of price variation. The predicted price is, in this situation, a special case of implementing a random function. Assuming that other implementations are also possible, regressive models may constitute a basis for simulation, which results in the procurement of a future image of the market. Simulation may refer both to real estate prices and transaction prices. The basis for price simulation may be familiarity with the structure of the analyzed market data. Assuming that this structure has a static character, simulation of real estate prices is performed on the basis of familiarity with the probability distribution and a generator of random numbers. The basis for price simulation is familiarity with model parameters and probability distribution of the random factor. The study presents the core and theoretical description of a transaction simulation on the real estate market, as well as the results of an experiment regarding transaction prices of office real estate located within the area of the city of Olsztyn. The result of the study is a collection of virtual real properties with known features and simulated prices, constituting a reflection of market processes which may take place in the near future. Comparison between the simulated characteristic and actual transactions in turn allows the correctness of the description of reality by the model to be verified.

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