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Study Completed: 2009
College of Business
Monthly house price indicies and their applications in New Zealand
Mr Shi investigated the use of the sale price appraisal ratio (SPAR) technique to improve the timeliness of reported house price indices for local housing markets. He also tested the usefulness of monthly price indices to study the sale price and trading volume relationship, the ripple effect of local house price co-movements, and the efficient market hypothesis for local housing markets. The results suggest trading volume leads sale prices in the long-run, the ripple effect is regionally constrained, and local house price movements are strongly correlated andare mean reverting towards their long-run equilibrium. Overall, the research demonstrated that monthly price indices can be generated using the SPAR method at local market levels. However, this potential is limited to large cities.
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Last updated on Tuesday 04 April 2017