Using an Exponential Generalized Autoregressive Conditional Heteroskedasticity model (EGARCH), the volatile nature of residential property prices in New Zealand is examined. The model investigates the extent to which macroeconomic fundamentals and a combined population shift/visitor
factor called "tourism" impact residential property values and capture variations in volatility across different regions. We find that fundamentals have different impacts across regional property markets. In line with the literature, the bigger metropolitan regions like Auckland and Christchurch
are more sensitive to macroeconomic factors than smaller regions. Additionally, we find house price volatility in southern regions is affected by macroeconomic fluctuations more than northern areas. Novel to the literature, we discover that "tourism" has significant impact on house price volatility
as well, particularly in popular touristic areas. These results imply that to better understand the determinants of house price volatility and mitigate its effects, policy makers should consider a coordinated approach, taking a regional perspective and the interaction of several variables
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
HOUSE PRICE VOLATILITY;
TOURISM DEMAND AND HOUSING PRICE NEXUS
Document Type: Research Article
November 13, 2019
This article was made available online on August 13, 2019 as a Fast Track article with title: "Towards Understanding the Housing Price Volatility of Housing Prices and Exploring the Tourism Demand Impact".
More about this publication?
The aim of Tourism Analysis is to promote a forum for practitioners and academicians in the fields of Leisure, Recreation, Tourism, and Hospitality (LRTH). As a interdisciplinary journal, it is an appropriate outlet for articles, research notes, and computer software packages designed to be of interest, concern, and of applied value to its audience of professionals, scholars, and students of LRTH programs the world over.