 House Price Convergence on the Primary and Secondary Markets: Evidence from Polish Provincial CapitalsReal Estate Management and Valuation, 2019, vol. 27, issue 4, 62-73 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. Keywords: log t regression; the housing market in Poland; σ-convergence; β-convergence; house price convergence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:27:y:2019:i:4:p:62-73:n:6 Access Statistics for this article Real Estate Management and Valuation is currently edited by Sabina Zrobek More articles in Real Estate Management and Valuation from Sciendo |
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