Journal article

Is the Australian housing market in a bubble?

Justine Wang, Alla Koblyakova, Piyush Tiwari, John S Croucher

International Journal of Housing Markets and Analysis | EMERALD GROUP PUBLISHING LTD | Published : 2018

Abstract

Purpose This paper aims to explore principal drivers affecting prices in the Australian housing market, aiming to detect the presence of housing bubbles within it. The data set analyzed covers the past two decades, thereby including the period of the most recent housing boom between 2012 and 2015. Design/methodology/approach The paper describes the application of combined enhanced rigorous econometric frameworks, such as ordinary least square (OLS), Granger causality and the Vector Error Correction Model (VECM) framework, to provide an in-depth understanding of house price dynamics and bubbles in Australia. Findings The empirical results presented reveal that Australian house prices are ..

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Funding Acknowledgements

The authors would like to acknowledge the substantial contribution made to this research by the late Professor Tom Valentine. His valuable insights and suggestions are greatly appreciated. The authors thank Professor Robert H. Edelstein from the Hass School of Business, University of California Berkeley for comments that greatly improved the manuscript. This research was supported by CoreLogic RP Data. They have supplied many key property data directly to the research committee. The authors thank their colleagues from SIRCA who provided direct access to CoreLogic RP Data, which significantly facilitated the research. They thank their industry sponsor SAMLoans supports.