Bounds Testing Approaches to Housing Demand in Turkey: Is There a Real Estate Bubble?

In this study, housing demand in Turkey was examined with Bounds Testing Approaches for the period of 1964-2014. The total square meters of houses sold was taken as housing demand. The explanatory variables of the study are the real price of one square meter of housing, real income level, and urban...

Full description

Saved in:
Bibliographic Details
Published in:International journal of economics and financial issues 2016-05, Vol.6 (3), p.1132-1135
Main Authors: Ali Osman Solak, Burhan Kabadayı
Format: Article
Language:English
Subjects:
bounds testing approach
housing demand
real estate bubble
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this study, housing demand in Turkey was examined with Bounds Testing Approaches for the period of 1964-2014. The total square meters of houses sold was taken as housing demand. The explanatory variables of the study are the real price of one square meter of housing, real income level, and urban population. Firstly, stationary properties of the series were checked by unit root tests, then co-integration was investigated. Lastly, we ran the Autoregressive lag model process. We found that Turkey is more sensitive to income level and there is positive relationship between prices and housing demand. This might be accounted for by the fact that houses are kinds of investment goods in Turkey.
ISSN:2146-4138