Variation across price segments and locations: A comprehensive quantile regression analysis of the Sydney housing market

Sofie R. Waltl
University of Graz

Abstract

Standard house price indices measure average movements of average houses in average locations belonging to an average price segment and hence obscure spatial and cross‐sectional variation of price appreciation rates even within a single metropolitan area. This article combines penalized quantile regression techniques with the hedonic imputation approach to reveal such kind of variation. The method is applied to house transactions from Sydney between 2001 and 2014. The analysis finds significant variation across sub‐markets over time and in particular during the boom‐and‐bust cycle peaking in 2004. Appreciation rates were highest for suburban, low‐priced and lowest for inner‐city, high‐priced houses.

This project has benefited from funding from the Austrian National Bank (Jubiläums-fondsprojekt 14,947) and the JungforscherInnenfonds sponsored by the council of the University of Graz.

Dissemination

Variation across price segments and locations: A comprehensive quantile regression analysis of the Sydney housing market”, forthcoming in Real Estate Economics, doi: 10.1111/1540-6229.12177.

Presentations: [LISER, Luxembourg, January 2017] [ARUEA-ASSA meeting in Chicago, January 2017] [Regional Studies Association Annual Conference, U Graz, April 2016] [ISW Workshop on Empirical Economics, WIFO, Vienna, January 2016] [SEM conference at OECD, July 2015]  [Workshop on Improvements in Price Index Methodology and Practice: The International Comparisons Program (ICP) and the Measurement of Movements in House Prices, U Graz, December 2014]

Advertisements