An Investigation of the Synchronization in Global House Prices

Martin Hoesli* (Corresponding Author)

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Purpose
The purpose of this paper to provide a discussion of the empirical evidence and contributing factors of the synchronization of house prices globally.

Design/methodology/approach
The author reviewed the main studies on house price synchronization and conducted an empirical analysis using OECD house price indices. A discussion of the contributing factors of synchronization, with a focus on the demand and supply dimensions is provided, and synchronization across both countries and cities is examined.

Findings
Housing markets globally have become more synchronized; this is particularly clear for cities. The sustained demand for places that are attractive for financial motives and for lifestyle and sometimes climate along with the fact that such places tend to be supply-constrained is likely to lead to more synchronization across markets.

Practical implications
The conclusions are important for investors seeking to diversify their housing holdings internationally. The discussion should also benefit policy-makers.

Originality/value
To date, very scarce evidence exists on the synchronization of house prices globally. By surveying the results contained in previous studies and providing a thorough discussion of the possible drivers of house price synchronization, this study contributes to a better understanding of this important topic.
Original languageEnglish
Pages (from-to)17-27
Number of pages11
JournalJournal of European Real Estate Research
Volume13
Issue number1
Early online date28 Feb 2020
DOIs
Publication statusPublished - 2020

Keywords

  • synchronization
  • housing markets
  • house prices
  • global liquidity
  • housing supply
  • magnet cities
  • Housing supply
  • Magnet cities
  • House prices
  • Housing markets
  • Global liquidity
  • Synchronization

ASJC Scopus subject areas

  • Economics and Econometrics
  • Accounting
  • Finance

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