Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China
| Autor: | Chuyi Xiong, Ka Shing Cheung, Chung Yim Yiu |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
050208 finance
lcsh:Risk in industry. Risk management 05 social sciences Outbreak COVID-19 Real estate Wuhan China house price gradient lcsh:HD61 revealed-preference Epicenter Revealed preference lcsh:Finance lcsh:HG1-9999 0502 economics and business Pandemic ddc:330 Economics Demographic economics Asset (economics) 050207 economics China Transaction data health care economics and organizations |
| Zdroj: | Journal of Risk and Financial Management Volume 14 Issue 3 Journal of Risk and Financial Management, Vol 14, Iss 108, p 108 (2021) |
| ISSN: | 1911-8074 |
| DOI: | 10.3390/jrfm14030108 |
| Popis: | While the outbreak of the COVID-19 disease has caused asset markets to experience an unprecedented spike of risk and uncertainty worldwide, the real estate market in many global cities appears to be immune to the adverse effects. How does COVID-19 affect urban housing markets? This study is a first attempt to identify the pandemic’s impact on house prices by applying a price gradient analysis to the COVID-19 epicentre in China. Considering microlevel housing transaction data in 62 areas from nine districts in Wuhan City from January 2019 to July 2020, the hedonic pricing and the price gradient models suggest that there was, respectively, a 4.8% and a 5.0–7.0% year-on-year fall in house prices immediately after the pandemic outbreak. Although house prices rebounded after the lockdown period, the gradient models show that the price gradients were flattened from the epicentre to the urban peripherals. The price premiums in high-density areas were also substantially discounted after the city’s lockdown. Our findings are robust to different model specifications. The implication is that the risk associated with the pandemic is localised and transitory in nature. People may be able to internalise the risk by residing in low-density residential areas. |
| Databáze: | OpenAIRE |
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