The impact of COVID-19 on the housing market: evidence from the Yangtze river delta region in China

Yang, Minhua; Zhou, Junni

doi:10.1080/13504851.2020.1869159

Cited by 31 publications

(28 citation statements)

References 13 publications

(12 reference statements)

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“…As economic development is closely associated with the housing market and the monetary policies often go in tandem with the housing market cycle (Chen and Wen 2017;Apergis 2021), studies started to explore the linkage between the pandemic and the property market (Yang and Zhou 2021;Wang 2021). Ling et al (2020) have examined how the pandemic shock influences commercial real estate prices and found that the risk-adjusted returns for real estate investment trusts (REITs) significantly respond to the COVID-19 cases growth.…”

Section: The Impacts Of Covid-19 On the Housing Marketmentioning

confidence: 99%

“…Using weekly housing price indices from 64 cities in China, this study found that the COVID-19 epidemic had a slightly negative effect on house prices but a strong negative effect on transaction volume. Yang and Zhou (2021) even suggested a positive impact of COVID-19 on housing prices in the second-and thirdtier cities in China. Nevertheless, they are using the average selling price of commercial housing at the city level, which did not consider the quality difference of properties.…”

Section: The Impacts Of Covid-19 On the Housing Marketmentioning

confidence: 99%

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Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China

Cheung

Yiu

Xiong

2021

JRFM

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While the outbreak of the COVID-19 disease has caused asset markets to experience an unprecedented spike of risk and uncertainty worldwide, the real estate market in many global cities appears to be immune to the adverse effects. How does COVID-19 affect urban housing markets? This study is a first attempt to identify the pandemic’s impact on house prices by applying a price gradient analysis to the COVID-19 epicentre in China. Considering microlevel housing transaction data in 62 areas from nine districts in Wuhan City from January 2019 to July 2020, the hedonic pricing and the price gradient models suggest that there was, respectively, a 4.8% and a 5.0–7.0% year-on-year fall in house prices immediately after the pandemic outbreak. Although house prices rebounded after the lockdown period, the gradient models show that the price gradients were flattened from the epicentre to the urban peripherals. The price premiums in high-density areas were also substantially discounted after the city’s lockdown. Our findings are robust to different model specifications. The implication is that the risk associated with the pandemic is localised and transitory in nature. People may be able to internalise the risk by residing in low-density residential areas.

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Section: The Impacts Of Covid-19 On the Housing Marketmentioning

confidence: 99%

Section: The Impacts Of Covid-19 On the Housing Marketmentioning

confidence: 99%

Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China

Cheung

Yiu

Xiong

2021

JRFM

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“…Kadi et al (2020) examined the impact of COVID-19 on the rental housing market based on an analysis of real estate listings in four large Austrian cities and found out that property owners have reconsidered their decision to use their units for touristic purposes, converted them back to the regular rental market as a result of increasing rental prices. In terms of COVID-19 restrictions, Yang and Zhou (2021), while studying the impacts of COVID-19 on the housing market in China revealed that there was a considerable and significant positive housing price after the emergence of the pandemic implying the urgent need to stay together for better home quarantine. Wang (2021) argued that stay at home orders and business restrictions has led to an upsurge in housing prices, especially in houses with better amenities.…”

Section: 20 Methodologymentioning

confidence: 99%

“…It was found out that with proximity to large urban centres some Canadian cities witnessed a rise in housing prices (Verma & Husain, 2020), housing values also increases with increasing reported cases of COVID-19 in Massachusetts, United States (Arcaya et al, 2020). In the same vein, because of the need to stay together for better home quarantine, there was a considerably significant rise in the housing prices in Chinese cities (Yang & Zhou, 2021).…”

Section: Figure 2 Impacts Of Covid-19 On Housing Marketmentioning

confidence: 99%

“…There are little growing literature on how the housing market fared with the emergence of the COVID-19 pandemic (Allen-Coghlan & McQuinn, 2021;Allen-Coghlan et al, 2020;Arcaya et al, 2020;Boshoff, 2020;Delgado & Katafuchi, 2020;Del Giudice et al, 2020;Evans et al, 2020;Kadi et al, 2020;Kulander & Wilhelmsson, 2020;Marona & Tomal, 2020;Özen, 2020;Pfeifer & Steurer, 2020;Tanrıvermiş, 2020;Verhaeghe & Ghekiere, 2021;Yang & Zhou, 2021). For instance, the possible effect of the COVID-19 pandemic on the housing sector of Ireland was looked into by Allen-Coghlan and McQuinn (2021), while Arcaya et al (2020) investigated rising rental values and COVID-19 case rates in Massachusetts, United States.…”

Section: 10 Introductionmentioning

confidence: 99%

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Impact of COVID-19 on Housing Market: A Review of Emerging Literature

Mohammed

Aliyu

Dzukogi

et al. 2021

INTREST

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The housing market over the years has been impacted by various factors in different ways. This review paper examines the growing literature on the impact of COVID-19 on the housing market to ascertain its positive and negative effects. Thus, a total of 40 published conference papers, thesis, academic journal articles, and others obtained from secondary sources were reviewed and revealed that the novel coronavirus (COVID-19) in some scenarios had positive and negative impacts on the housing market. The paper found that the positive impacts include a rise in housing prices, increase in housing supply and reduction in mass evictions in some locations, while the negative impacts are on housing prices, demand and supply, constraints in mortgage return maintenance and delay in the construction of new housing apartments. The paper, therefore, concludes that both positive and negative impacts of the COVID-19 pandemic are felt on the housing market globally. These thereby form a basis for further studies on the growing impacts of the pandemic concerning the housing market.

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Do COVID-19 pandemic-related policy shocks flatten the bid-rent curve? Evidence from real estate markets in Shanghai

Bao

et al. 2023

J Hous and the Built Environ

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The COVID-19 pandemic has drastically affected the socioeconomic activities and peoples’ daily life, resulting in a change in locational preferences in the real estate markets. Although enormous efforts have been devoted to examining the housing price impacts of the COVID-19 pandemic, little is known about the responses of the real estate markets to the evolving pandemic control measures. This study investigates the price gradient effects of various pandemic-related policy shocks using a hedonic price model on the district-level property transaction data in Shanghai, China over a 48-month period from 2018 to 2021. We found that these shocks have significantly altered the bid-rent curves. The price gradient for residential property units decreased in absolute value to − 0.433 after Wuhan’s lockdown, demonstrating peoples’ preferences to avoid the high infection risks in districts closer to the city center. However, in the post-reopening and post-vaccine periods, the price gradient increased to − 0.463 and − 0.486, respectively, implying rational expectations of a recovering real estate market for the low infection and mortality rates. In addition, we discovered that Wuhan’s lockdown has steepened the price gradient for commercial property units, suggesting a decline in business volumes and an increase in operating costs in the low-density districts imposed by the strict pandemic control measures. This study contributes to the empirical literature on the price gradient effects of the COVID-19 pandemic by extending the study period to the post-vaccine era.

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The impact of COVID-19 on the housing market: evidence from the Yangtze river delta region in China

Cited by 31 publications

References 13 publications

Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China

Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China

Impact of COVID-19 on Housing Market: A Review of Emerging Literature

Do COVID-19 pandemic-related policy shocks flatten the bid-rent curve? Evidence from real estate markets in Shanghai

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