<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The aim of this study is to identify whether there is a common house price trend across provincial capitals in Poland. The log t regression is the main method of analysis. Additionally, traditional convergence tests based on the concepts of <italic>β</italic>- and <italic>σ</italic>-convergence are used. The obtained results indicate that the cities do not share a common price in the long-run. There are, however, convergence clubs on both primary and secondary markets. In each club, house prices across cities tend to converge to their own steady state. Moreover, research on the driving forces of convergence reports that factors affecting housing prices differ among the clubs. Therefore, policymakers should adjust housing policies in accordance with the characteristics of a given club. In turn, the <italic>σ</italic>-convergence model demonstrated a very interesting finding, namely, a U-shape pattern of convergence, both on the primary and secondary markets. This pattern is strictly correlated with the level of prices on the markets.</p></abstract>

The aim of this study is to identify whether there is a common house price trend across provincial capitals in Poland. The log t regression is the main method of analysis. Additionally, traditional convergence tests based on the concepts of β- and σ-convergence are used. The obtained results indicate that the cities do not share a common price in the long-run. There are, however, convergence clubs on both primary and secondary markets. In each club, house prices across cities tend to converge to their own steady state. Moreover, research on the driving forces of convergence reports that factors affecting housing prices differ among the clubs. Therefore, policymakers should adjust housing policies in accordance with the characteristics of a given club. In turn, the σ-convergence model demonstrated a very interesting finding, namely, a U-shape pattern of convergence, both on the primary and secondary markets. This pattern is strictly correlated with the level of prices on the markets.

House Price Convergence on the Primary and Secondary Markets: Evidence from Polish Provincial Capitals

Department of Economics for Real Estate and Investment Process

Real Estate Management and Valuation

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

The aim of this study is to identify whether there is a common house price trend across provincial capitals in Poland. The log t regression is the main method...

House Price Convergence on the Primary and Secondary Markets: Evidence from Polish Provincial Capitals

Pubblicato online: 16 dic 2019

Pagine: 62 - 73

DOI: https://doi.org/10.2478/remav-2019-0036

Parole chiave
log t regression, the housing market in Poland, σ-convergence, β-convergence, house price convergence

© 2019 Mateusz Tomal, published by Sciendo

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

House Price Convergence on the Primary and Secondary Markets: Evidence from Polish Provincial Capitals

Pubblicato online: 16 dic 2019

Pagine: 62 - 73

DOI: https://doi.org/10.2478/remav-2019-0036

Parole chiavelog t regression, the housing market in Poland, σ-convergence, β-convergence, house price convergence

© 2019 Mateusz Tomal, published by Sciendo

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

Parole chiave
log t regression, the housing market in Poland, σ-convergence, β-convergence, house price convergence