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From Housing Speculation to Bubbles: The Role of Intercity Spillovers

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

The general consensus is that financial crises are caused by the housing speculative bubbles burst, yet little is known about the process of the speculation via intercity interactions. According to the non-fundamental component (NFC) as an indicator of speculative behaviors among Australian capital cities, this study employs a series of time-varying spillover methods to prove that speculation-driven interactions are very popular; moreover, intercity spillovers are particularly prevalent in the presence of speculative bubbles. The findings clearly establish that intercity spillovers are inextricably intertwined with housing speculation and subsequent bubbles. How to monitor and block intercity spillovers deserves explicit emphasis. © 2026 American Real Estate Society.
Original languageEnglish
JournalJournal of Real Estate Research
Online published4 May 2026
DOIs
Publication statusOnline published - 4 May 2026

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Funding

This work was supported by National Science and Technology Council, NSTC [114-2410-H-033-013-MY2].

Research Keywords

  • bubbles
  • housing spillovers
  • NFC
  • Speculation

Publisher's Copyright Statement

  • COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Real Estate Research on 4 May 2026, available online: https://www.tandfonline.com/doi/full/10.1080/08965803.2026.2659532.

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