COVID-19 and Housing Prices: Australian Evidence with Daily Hedonic Returns

Maggie R. Hu, Adrian Lee () and Dihan Zou ()

Finance Research Letters, 2021, vol. 43, issue C

Abstract: Using daily hedonic housing price index for five Australian capital cities, we document a negative relationship between prior COVID-19 cases and daily housing returns. Specifically, the daily housing return drops by 0.35 basis points or 1.26 percentage points annually for every doubling of newly confirmed COVID-19 cases in a state. We also examine the effect of government lockdown orders on housing returns and find insignificant results. These findings are robust under alternative pandemic proxies such as total active COVID-19 cases and other model specifications. Overall, our paper contributes to the literature on the geographic spread of pandemics and real estate prices.

Keywords: COVID-19; Lockdown; Stay at home orders; Housing prices (search for similar items in EconPapers)
JEL-codes: G12 R30 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000416

DOI: 10.1016/j.frl.2021.101960

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