Modelling Housing Market Fundamentals - Sydney

The book is based on housing prices determinants in Sydney, and housing prices have increased rapidly in recent years. This book leads to a debate of whether Sydney housing prices have departed from macroeconomic fundamentals. However, little empirical studies have been devoted to this area. Therefore, the book aims to fill this gap by examining the long run association between housing prices and market fundamentals. In addition, it also examines the long-run determinants of housing prices in Greater Sydney over 1991-2016 by using a Vector Error Correction Model (VECM). The empirical results suggested that Sydney housing prices are cointegrated with market fundamentals in the long run.