Housing price convergence, transportation infrastructure and dynamic regional population relocation. (September 2018) - Tsai, I-Chun
Abstract: This study examined the housing prices in major metropolitan areas in Taiwan and identified the reasons for the significant differences among them. A quantitative analysis of the spread effect in the housing prices revealed that the improvement in transportation infrastructure in the most recent decade intensified the spread effect. The findings obtained in this study also showed that relocation behavior and population density are the principal influencing factors on the spread effect in housing prices, validating that relocation behavior is incited by differences in housing prices and the convergence of housing prices in different cities. However, high housing price returns have also caused residents of northern Taiwan to relocate to central Taiwan. The empirical findings in this study indicate that in the past, Taiwanese housing prices were dispersed and differed significantly. These differences were caused by regional economic imbalance and inadequate transportation infrastructure. This situation has gradually improved.