<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Neighbouring local property markets are not separate realities. They influence one another and create an interrelated system of supply and demand. Some of these interrelations are convergent, while others result in contradictory trends on the markets. Convergence is a term denoting a process of some phenomena approaching its normative level. Tests for the presence of convergence help to assess if the objects under observation show resemblance in the context of the observed phenomenon, and to find out how long it takes for this resemblance to be complete. In this paper, I propose the application of methods normally used in tests for convergence for the purpose of the analysis of trends of the average residential property prices in some districts in Szczecin over the time range of 2006–2009, that is during the housing bubble on the residential property market. The study will provide information if such a market phase encourages price convergence.</p></abstract>

Neighbouring local property markets are not separate realities. They influence one another and create an interrelated system of supply and demand. Some of these interrelations are convergent, while others result in contradictory trends on the markets. Convergence is a term denoting a process of some phenomena approaching its normative level. Tests for the presence of convergence help to assess if the objects under observation show resemblance in the context of the observed phenomenon, and to find out how long it takes for this resemblance to be complete. In this paper, I propose the application of methods normally used in tests for convergence for the purpose of the analysis of trends of the average residential property prices in some districts in Szczecin over the time range of 2006–2009, that is during the housing bubble on the residential property market. The study will provide information if such a market phase encourages price convergence.

Tests for the Presence of Price Convergence on Residential Property Market in Several Districts of Szczecin in 2006–2009

University of Szczecin, Faculty of Economics and Management, Institute of Econometrics and Statistics, Mickiewicza 64, 71-101 Szczecin,

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Neighbouring local property markets are not separate realities. They influence one another and create an interrelated system of supply and demand. Some of...

Tests for the Presence of Price Convergence on Residential Property Market in Several Districts of Szczecin in 2006–2009

Published Online: Dec 30, 2016

Page range: 186 - 195

Received: Nov 10, 2015

Accepted: Jun 11, 2016

DOI: https://doi.org/10.1515/foli-2016-0011

Keywords
price convergence, residential property market

© 2016 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Tests for the Presence of Price Convergence on Residential Property Market in Several Districts of Szczecin in 2006–2009

Published Online: Dec 30, 2016

Page range: 186 - 195

Received: Nov 10, 2015

Accepted: Jun 11, 2016

DOI: https://doi.org/10.1515/foli-2016-0011

Keywordsprice convergence, residential property market

© 2016 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
price convergence, residential property market