New Housing Supply and Residential Construction Costs in Australia: A Panel ECM Approach
Date
2011
Authors
Liu, J.
London, K.A.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Conference paper
Citation
PRRES 2011 : Proceedings of the 17th Pacific Rim Real Estate Society Annual Conference, 2011, pp.1-21
Statement of Responsibility
Conference Name
17th Pacific Rim Real Estate Society Conference (16 Jan 2011 - 19 Jan 2011 : Gold Coast, Australia)
Abstract
The supply of new housing in Australia has been experiencing a low increase rate since the 1990s in conjunction with an increasingly strong housing demand. On the contrary, residential construction costs across Australia?s states maintained dramatic increases simultaneously. Economic theory suggests that new housing supply is correlated to the costs of residential constructions. However, few empirical studies have focused on examining this relationship for Australian housing markets. To comprehensively investigate the relationship between the supply of new housing and residential construction costs a function for new housing supply considering the effects of regional heterogeneities is introduced in this study. By estimating a panel error correction model (ECM) applicable for quantifying the correlation with regional heterogeneities, this research identifies that a causal link and a strong correlation exist in between new housing supply and residential construction costs in Australia.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
Copyright 2016 The Authors