||Important Macroeconomic Factors Affecting Housing Price in Taiwan : Evidence from Taipei City, Taichung City, and Kaohsiung City
||Graduate Institute of Finance
Taiwan housing price
This paper focuses on the important macroeconomic variables that affect housing prices in Taiwan, and taking Taipei City, Taichung City, and Kaohsiung City as examples. It provides relevant authorities that can use these macroeconomic policy tools to make adjustments to the housing market. The sample period was from 2001 to 2018 with a total of 72 sample. I regressed the three sample cities’ housing price with construction costs, mortgage rates, money supply (M1B), stock index, and inflation rates. The research results show that the money supply and the interest rate have a significantly positive impact in the three sample cities. The construction cost variable has a significantly positive impact on housing price of Taipei City and Taichung City. The inflation rate only have significantly positive impact on housing prices in Kaohsiung City. The stock index only have significantly negative impact on housing prices in Kaohsiung City. From these results, these macroeconomic policy tools will have an opposite effect on housing price, and only affect house prices in specific cities when the relevant authorities want to adjust house prices through macroeconomic variables.
1. Introduction 1
2. Literature Review and Hypothesis Development 3
2.1 Interest Rate 4
2.2 Inflation Rate 4
2.3 Construction Cost 5
2.4 GDP 6
2.5 Money Supply 6
2.6 Stock Index 7
3. Methodology 8
3.1 Sample Selection 8
3.2Model Development 9
4. Results 12
4.1 Sample Figures and Trend Description 12
4.2 Descriptive Statistics 16
4.3 Main Results 18
5. Conclusion 23
6. Reference 25
6.1 English Reference 25
6.2 Website Reference 28
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6.2 Website Reference