TY - JOUR
T1 - Housing Price Dynamics on Residential Construction
T2 - A Case Study of the Australian Property Sector
AU - Ma, Le
AU - Liu, Henry
AU - Edwards, David J.
AU - Sing, Michael C.P.
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
Funding Information:
Acknowledgments. We gratefully thank two anonymous LORI 2009 referees for their comments. Davide Grossi is supported by Nederlandse Organisatie voor Wetenschappelijk Onderzoek (VENI grant Nr. 639.021.816). Fernando R. Velázquez-Quesada is supported by Consejo Nacional de Ciencia y Tec-nología (CONACyT), México (scholarship # 167693).
Funding Information:
We gratefully thank two anonymous LORI 2009 referees for their comments. Davide Grossi is supported by Nederlandse Organisatie voor Wetenschappelijk Onderzoek (VENI grant Nr. 639.021.816). Fernando R. Velázquez-Quesada is supported by Consejo Nacional de Ciencia y Tec-nología (CONACyT), México (scholarship # 167693).
Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/12
Y1 - 2021/12
N2 - Residential construction price is a critical indicator to optimise key-market stakeholders’ decision-making for property development. As an up-stream market, housing market can bring significant effects on the residential construction sector. However, the relationship between housing and construction markets has been overlooked. This study therefore examines house price dynamics on residential construction by addressing a research question: How do construction prices respond to the changes of house prices? A panel error correction model is developed to estimate the long-run equilibrium and short-run dynamic patterns between the two markets. Significant market relationships are identified, e.g., long-run equilibrium between housing and residential construction prices in Australia’s Capital Territory and states South Australia, Tasmania and Victoria. Conversely, short-run dynamic patterns are derived in New South Wales, Queensland, Victoria and South Australia. This research provides the key stakeholders with an insight into market interaction and a reliable prediction tool for decision making of real-estate planning/development.
AB - Residential construction price is a critical indicator to optimise key-market stakeholders’ decision-making for property development. As an up-stream market, housing market can bring significant effects on the residential construction sector. However, the relationship between housing and construction markets has been overlooked. This study therefore examines house price dynamics on residential construction by addressing a research question: How do construction prices respond to the changes of house prices? A panel error correction model is developed to estimate the long-run equilibrium and short-run dynamic patterns between the two markets. Significant market relationships are identified, e.g., long-run equilibrium between housing and residential construction prices in Australia’s Capital Territory and states South Australia, Tasmania and Victoria. Conversely, short-run dynamic patterns are derived in New South Wales, Queensland, Victoria and South Australia. This research provides the key stakeholders with an insight into market interaction and a reliable prediction tool for decision making of real-estate planning/development.
KW - Housing prices
KW - Residential construction prices
KW - Long-run equilibrium
KW - Short-run dynamic patterns
KW - Market prediction
UR - http://www.scopus.com/inward/record.url?scp=85117903374&partnerID=8YFLogxK
U2 - 10.1016/j.strueco.2021.10.001
DO - 10.1016/j.strueco.2021.10.001
M3 - Article
SN - 0954-349X
VL - 59
SP - 525
EP - 532
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
ER -