A Study on the Measurement of Real Estate Bubble Based on GSADF: A Case Study of Four Super First-tier Cities in China-Reference-Cited by-同舟云学术

A Study on the Measurement of Real Estate Bubble Based on GSADF: A Case Study of Four Super First-tier Cities in China

Published:2023-02-16 Issue: Volume:5 Page:499-506
ISSN:2957-952X
Container-title:Highlights in Business, Economics and Management
language:
Short-container-title:HBEM

Author:

Gu Zeyang

Abstract

The problem of high house prices is particularly prominent in super first-tier cities, and real estate bubbles are affecting the healthy development of the real estate industry. This paper applies the GSADF model to measure the year-on-year sales price indices of new commercial dwellings in four super first-tier cities in China, Beijing, Shanghai, Guangzhou, and Shenzhen, from 2011M01 to 2022M08, to examine the time points when their bubbles occur and burst. Results show that the bubbles in the four cities mainly appear in six time periods, and the maximum values of GSADF statistics all appear in 2013M03-2013M05, and the peak and frequency of the bubbles decrease significantly after 2018. Therefore, this paper suggests that we continue to adhere to the principle of "no speculation in housing"; improve the land use policy and build a multi-level housing supply system and continue to implement city-based regulation and control.

Publisher

Darcy & Roy Press Co. Ltd.

Reference10 articles.

1. Wang Jingbin, Xia Bebe. 40 Years of Real Estate Reform in China: Market and Policy [J]. Macroeconomic Research, 2019(10):25-34+168.

2. Peng J H, Xu G H, Zhou A M. Research on urban real estate bubble measurement: An analysis based on the screening of underlying values and bubble components [J]. Price Theory and Practice, 2018(07):59-62.

3. Wang H. The correct method of using factor analysis to measure the current real estate bubble in China: A combination of literature research and empirical research proof [J]. Macroeconomic Research, 2017(06):147-157.

4. Zhan S, Tang X Y. A study on the real estate market bubble in Shenyang based on factor analysis [J]. Journal of Shenyang University of Architecture (Social Science Edition), 2021,23(05): 470-474.

5. Phillips P C B, Wu Y, Yu J. Explosive Behavior in the 1990s Nasdaq: When Did Exuberance Escalate Asset Values? [J]. Peter C. B. Phillips, 2011, 52(1).