Seoul housing prices and the role of speculation
Xiao, Qin; Park, Donghyun | June 2010
Between June 1998 and March 2006, the price index of apartment houses in Seoul, Korea, more than doubled, while fundamentals such as GDP, wage, and population increased by less than 35%. This study examines the role of a rational speculative bubble in this price surge. We find that unobservable information explains part of the price volatility; and that a rational bubble proxy is a significant driver of prices. However, neither latent information nor rational bubble is enough to explain the recent housing price appreciation, even in conjunction with observable fundamentals.
CitationXiao, Qin; Park, Donghyun. 2010. Seoul housing prices and the role of speculation. © Springer. http://hdl.handle.net/11540/4307.
Regional Economic Development
Gross domestic product
Open price system
Consumer price indexes
Labor turnoverShow allCollapse