Tests for the Presence of Price Convergence on Residential Property Market in Several Districts of Szczecin in 2006–2009

Neighbouring local property markets are not separate realities. They influence one another and create an interrelated system of supply and demand. Some of these interrelations are convergent, while others result in contradictory trends on the markets. Convergence is a term denoting a process of some...

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Bibliographic Details
Published inFolia oeconomica stetinensia Vol. 16; no. 1; pp. 186 - 195
Main Author Gnat, Sebastian
Format Journal Article
LanguageEnglish
Published Wydawnictwo Naukowe Uniwersytetu Szczecińskiego 01.12.2016
Szczecin University Press
De Gruyter Open
Sciendo
Subjects
C38
Economy
Financial Markets
Micro-Economics
price convergence
R30
residential property market
Socio-Economic Research
residential property market
price convergence
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Summary:Neighbouring local property markets are not separate realities. They influence one another and create an interrelated system of supply and demand. Some of these interrelations are convergent, while others result in contradictory trends on the markets. Convergence is a term denoting a process of some phenomena approaching its normative level. Tests for the presence of convergence help to assess if the objects under observation show resemblance in the context of the observed phenomenon, and to find out how long it takes for this resemblance to be complete. In this paper, I propose the application of methods normally used in tests for convergence for the purpose of the analysis of trends of the average residential property prices in some districts in Szczecin over the time range of 2006–2009, that is during the housing bubble on the residential property market. The study will provide information if such a market phase encourages price convergence.
ISSN:1730-4237
1898-0198
1898-0198
DOI:10.1515/foli-2016-0011