An examination of house price bubble in the real estate sector: the case of a small island economy – Fiji. Issue 4 (25th February 2021)

• Record Type: Journal Article
• Authors: Khan, Mohsin; Singh, Rup; Patel, Arvind; Jain, Devendra Kumar
• Is Part Of: International journal of housing markets and analysis. Volume 14:Issue 4(2021)
• Page Start: 745
• Page End: 758
• Publication Date: 2021-02-25
• Subjects: Housing price bubble -- Housing market analysis -- Housing policy -- Equilibrium housing price in Fiji -- Small island developing states (SIDS); R31 -- R51 -- E44 -- G01; Residential real estate -- Periodicals; 333.3382205
• DOI: 10.1108/IJHMA-05-2020-0056
• Languages: English
• ISSNs: 1753-8270

Abstract

Abstract : Purpose: This paper aims to assess the equilibrium house price in the city of Suva (Fiji) and to analyse the house price bubble in the Fiji housing market. Design/methodology/approach: This paper adopts a time series approach to determine the presence of house price bubbles in Fiji over the period from 1988 to 2018. Findings: The findings suggest that real income, land cost, building material price, inflation rate, volatility, household size and wealth have a positive impact on house prices, whereas user cost of capital and political disturbances have a negative impact. The findings further indicate that the Fijis' housing market does not constitute any house price bubble. Practical implications: This paper draws policy implications for a small developing state (Fiji) and other similar economies. Originality/value: The price bubble in the Fiji housing market is analysed for the first time. This paper develops a comprehensive empirical approach to assess the equilibrium-housing price in Fiji.