Abstract
The supply of new housing in Australia has been experiencing a low increase rate since the 1990s in conjunction with an increasingly strong housing demand. On the contrary, residential construction costs across Australia?s states maintained dramatic increases simultaneously. Economic theory suggests that new housing supply is correlated to the costs of residential constructions. However, few empirical studies have focused on examining this relationship for Australian housing markets. To comprehensively investigate the relationship between the supply of new housing and residential construction costs a function for new housing supply considering the effects of regional heterogeneities is introduced in this study. By estimating a panel error correction model (ECM) applicable for quantifying the correlation with regional heterogeneities, this research identifies that a causal link and a strong correlation exist in between new housing supply and residential construction costs in Australia.
| Original language | English |
|---|---|
| Title of host publication | PRRES 2011: Proceedings of the 17th Pacific Rim Real Estate Society Annual Conference |
| Place of Publication | Australia |
| Publisher | Pacific Rim Real Estate Society |
| Pages | 1-21 |
| Number of pages | 21 |
| Publication status | Published - Jan 2011 |
| Externally published | Yes |
| Event | 17th Annual Pacific Rim Real Estate Society Conference (PRRES 2011) - Gold Coast, Gold Coast, Australia Duration: 16 Jan 2011 → 19 Jan 2011 http://www.prres.net/index.htm?http://www.prres.net/Conference.htm |
Publication series
| Name | Pacific Rim Real Estate Society Conference |
|---|---|
| Publisher | Pacific Rim Real Estate Society |
| ISSN (Print) | 1444-8921 |
Conference
| Conference | 17th Annual Pacific Rim Real Estate Society Conference (PRRES 2011) |
|---|---|
| Abbreviated title | PRRES 2011 |
| Country/Territory | Australia |
| City | Gold Coast |
| Period | 16/01/11 → 19/01/11 |
| Internet address |