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NETWORK ANALYSIS OF HOUSING PRICE COMOVEMENTS OF A HUNDRED CHINESE CITIES

Published online by Cambridge University Press:  14 March 2022

Xiaojie Xu  and
Yun Zhang
Xiaojie Xu*
Affiliation:
North Carolina State University, Raleigh, NC, USA
Yun Zhang
Affiliation:
North Carolina State University, Raleigh, NC, USA
*
*Corresponding author. Email: xxu6@ncsu.edu
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Abstract

Housing price comovements are an important issue in economics. This study focuses on monthly housing prices of 99 major cities in China for the years 2010–2019 by using correlation-based hierarchical analysis and synchronisation analysis, through which one could determine interactions and interdependence among the prices, heterogeneous patterns in price synchronisations and their changing paths over time. Empirical results show that the degree of comovements is slightly lower after March 2017 but no persistent drop is found. Several groups of cities are identified, each of which has its members showing relatively strong but volatile price synchronisations. Certain cities show potential of serving as price leaders within a group. Results here could be useful to policy analysis regarding housing price comovements.

Keywords

housing pricecomovementnetworkhierarchyQ5C31C32R31R32
Type
Research Article
Information
National Institute Economic Review , Volume 264 , Summer 2023 , pp. 110 - 128
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of National Institute Economic Review

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