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Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China
In 2020, governments worldwide enforced lockdowns to contain the spread of COVID-19, severely impeding aspects of daily life such as work, school, and tourism. Consequently, numerous economic activities were affected. Before the COVID-19 outbreak, city-center housing markets in areas surrounding pop...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Inc.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9474407/ https://www.ncbi.nlm.nih.gov/pubmed/36124127 http://dx.doi.org/10.1016/j.asieco.2022.101544 |
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author | Tsai, I-Chun Chiang, Ying-Hui Lin, Shih-Yuan |
author_facet | Tsai, I-Chun Chiang, Ying-Hui Lin, Shih-Yuan |
author_sort | Tsai, I-Chun |
collection | PubMed |
description | In 2020, governments worldwide enforced lockdowns to contain the spread of COVID-19, severely impeding aspects of daily life such as work, school, and tourism. Consequently, numerous economic activities were affected. Before the COVID-19 outbreak, city-center housing markets in areas surrounding popular tourist attractions performed better than did suburban housing markets because of the output of the tourism industry. This study examines the changes in the performance of city-center and suburban housing markets in regions with popular tourist attractions after the lockdown. Specifically, the dynamics of city-center and suburban housing markets in Hangzhou, where West Lake is located, and the changes in the information transfer between these housing markets after the lockdown are explored. Transaction data from January 1, 2019 to September 30, 2020 are used to perform analysis, in which adjusted housing prices and asking prices are employed to measure market performance and sellers’ pricing strategies, and transaction volume and time on the market are used to measure market liquidity and transaction frequency. The results reveal that the effects of lockdowns differ between city-center and suburban housing markets. After the lockdown, a substantial structural change is observed in the suburban housing market; the volatility risk of housing prices decreases substantially, causing an increase in transaction premiums. Housing prices and transaction volume increase in the city-center housing market after the lockdown; this is possibly because of the influence from the overall housing market booms. In addition, because sellers raise their asking prices and the transaction time is extended, the sellers in the city-center housing market are particularly influenced by the disposition effect. This leads to a reversal in the lead–lag relationship between the city center and suburban housing markets in terms of informativeness. Specifically, before the lockdown, the city-center market transfers information to the suburban market, but after the lockdown, the suburban market transfers information to the city-center market. The COVID-19 pandemic has changed the world in many aspects; this paper finds that it will also change the development pattern of the real estate market in different locations. |
format | Online Article Text |
id | pubmed-9474407 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-94744072022-09-15 Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China Tsai, I-Chun Chiang, Ying-Hui Lin, Shih-Yuan J Asian Econ Article In 2020, governments worldwide enforced lockdowns to contain the spread of COVID-19, severely impeding aspects of daily life such as work, school, and tourism. Consequently, numerous economic activities were affected. Before the COVID-19 outbreak, city-center housing markets in areas surrounding popular tourist attractions performed better than did suburban housing markets because of the output of the tourism industry. This study examines the changes in the performance of city-center and suburban housing markets in regions with popular tourist attractions after the lockdown. Specifically, the dynamics of city-center and suburban housing markets in Hangzhou, where West Lake is located, and the changes in the information transfer between these housing markets after the lockdown are explored. Transaction data from January 1, 2019 to September 30, 2020 are used to perform analysis, in which adjusted housing prices and asking prices are employed to measure market performance and sellers’ pricing strategies, and transaction volume and time on the market are used to measure market liquidity and transaction frequency. The results reveal that the effects of lockdowns differ between city-center and suburban housing markets. After the lockdown, a substantial structural change is observed in the suburban housing market; the volatility risk of housing prices decreases substantially, causing an increase in transaction premiums. Housing prices and transaction volume increase in the city-center housing market after the lockdown; this is possibly because of the influence from the overall housing market booms. In addition, because sellers raise their asking prices and the transaction time is extended, the sellers in the city-center housing market are particularly influenced by the disposition effect. This leads to a reversal in the lead–lag relationship between the city center and suburban housing markets in terms of informativeness. Specifically, before the lockdown, the city-center market transfers information to the suburban market, but after the lockdown, the suburban market transfers information to the city-center market. The COVID-19 pandemic has changed the world in many aspects; this paper finds that it will also change the development pattern of the real estate market in different locations. Elsevier Inc. 2022-12 2022-09-15 /pmc/articles/PMC9474407/ /pubmed/36124127 http://dx.doi.org/10.1016/j.asieco.2022.101544 Text en © 2022 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Tsai, I-Chun Chiang, Ying-Hui Lin, Shih-Yuan Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title | Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title_full | Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title_fullStr | Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title_full_unstemmed | Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title_short | Effect of COVID-19 lockdowns on city-center and suburban housing markets: Evidence from Hangzhou, China |
title_sort | effect of covid-19 lockdowns on city-center and suburban housing markets: evidence from hangzhou, china |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9474407/ https://www.ncbi.nlm.nih.gov/pubmed/36124127 http://dx.doi.org/10.1016/j.asieco.2022.101544 |
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