Housing price development in Shanghai

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Journal ISSN

Volume Title

Insinööritieteiden korkeakoulu | Master's thesis

Date

2019-06-17

Department

Major/Subject

Mcode

Degree programme

Master's Programme in Real Estate Economics (REC)

Language

en

Pages

34

Series

Abstract

Rapid increase in housing prices and growing mortgage lending aroused great concern of whether there is bubble in Chinese housing market. In fact, the price-to-rent ratio and price-to-income ratio soar in most Chinese cities, especially in coastal- and some inland- areas, making housing affordability a prominent issue. The thesis tends to examine housing price movement in Shanghai over years 2002 to 2017 in order to reveal whether there was a bubble in Shanghai housing market and the possible implications. Measures like price-to-rent ratio, price-to-income ratio and cointegration test are employed to reflect the interaction between house price and market determinants like disposable income, GDP and land price etc. The house price movement shall be taken with caution in order to develop a dynamic housing market.

Description

Supervisor

Falkenbach, Heidi

Thesis advisor

Falkenbach, Heidi

Keywords

Shanghai housing price, housing bubble, cointegration test, price-to-income ratio

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