Climbing the property ladder: An analysis of market integration in London property prices

Jesús Otero, Mark J. Holmes, Theodore Panagiotidis

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

We investigate the long-run convergence of house prices across the London boroughs based on a pairwise unit root probabilistic testing procedure. In sharp contrast to the earlier literature, we employ a dataset that distinguishes between four different types of property in each borough. Using a quarterly dataset that spans from 1995 to 2014, we find evidence in favour of long-run convergence thereby suggesting that the great majority of London borough house prices are driven by a single common stochastic trend. In a further contribution, we offer new insights through analysing the determinants of long-run convergence, by considering the role of geographic proximity, type of accommodation, and amenities (quality of life).
Original languageEnglish (US)
Pages (from-to)1 - 22
JournalUrban Studies
DOIs
StatePublished - 2017

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market
testing procedure
amenity
quality of life
accommodation
determinants
trend
evidence
price
analysis
literature

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abstract = "We investigate the long-run convergence of house prices across the London boroughs based on a pairwise unit root probabilistic testing procedure. In sharp contrast to the earlier literature, we employ a dataset that distinguishes between four different types of property in each borough. Using a quarterly dataset that spans from 1995 to 2014, we find evidence in favour of long-run convergence thereby suggesting that the great majority of London borough house prices are driven by a single common stochastic trend. In a further contribution, we offer new insights through analysing the determinants of long-run convergence, by considering the role of geographic proximity, type of accommodation, and amenities (quality of life).",
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Climbing the property ladder: An analysis of market integration in London property prices. / Otero, Jesús; Holmes, Mark J.; Panagiotidis, Theodore.

In: Urban Studies, 2017, p. 1 - 22.

Research output: Contribution to journalArticle

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