The dynamics of housing returns in Singapore: How important are the international transmission mechanisms?

Kuang-Liang Chang, Nan-Kuang Chen, Charles Ka Yui Leung

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

34 Citations (Scopus)

Abstract

This paper studies the dynamics of housing returns in Singapore. We first extract the movements of Singapore's economic aggregates that are free from foreign (U.S. and rest of the world) factors, and then examine the determinants of its housing returns. We find that both the domestic variables (such as GDP growth rate, volume of international trade, and exchange rate) and U.S. variables (such as the Federal Fund Rate and the External Finance Premium) are important during the boom regime. The bust regime is very different. Directions for future research are discussed. © 2011 Elsevier B.V.
Original languageEnglish
Pages (from-to)516-530
JournalRegional Science and Urban Economics
Volume42
Issue number3
DOIs
Publication statusPublished - May 2012

Research Keywords

  • House price
  • International transmission mechanism
  • Regime-dependent response
  • Regime-switching
  • Two-stage procedure

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