How does the COVID-19 pandemic affect housing prices in China?

Terence Tai Leung Chong and Hengliang Liu

MPRA Paper from University Library of Munich, Germany

Abstract: COVID-19 was first reported in Wuhan in late December 2019, and then spread throughout China, which has had great influence on many aspects of the economy. This paper uses the two-way fixed effects model to investigate the non-linear relationship between the death toll of COVID-19 and the changes in housing prices using monthly panel data from November 2019 to May 2020. The results suggest that there is a U-shaped relationship between monthly death toll of COVID-19 and the percentage changes of housing prices in cities. In addition, the housing markets of New First-tier cities are more sensitive to the COVID-19 pandemic than Second and Third-tier cities, which the pandemic has had little effect on. Similarly, monthly confirmed cases of COVID-19 come to the same conclusions.

Keywords: COVID-19; Housing prices; Non-linear relationship; New First-tier cities (search for similar items in EconPapers)
JEL-codes: R31 (search for similar items in EconPapers)
Date: 2020-07-28
New Economics Papers: this item is included in nep-cna, nep-hea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:102103

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