Housing Market In Tokyo And Sydney

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The housing market in Tokyo and Sydney As the development growing faster and faster, new technology and commodities seems hard to sustain people’s appetites, however housing as a most traditionally costly and important commodity in human life is always to be the major issue for economists, socialists, government to concern with. Moreover the housing prices are emerged to be varied and oriented into different direction in different area or nations in this world. But in generally, the Housing price was tending to be increased in last few centuries. There are many factors would effect and determined the housing price, for an instance, demographic reason of population growth; Event reason of disaster would wipe out houses make the area to rebuild etc. But here we only analyze the economic factors would influenced the housing price. In generally the unemployment rate, income, inflation rate, foreign direct investment and public policies etc are all economic factors would be the reason to pull or push the demand and supply to cause the price change of housing. The model of the hedonic-based regression approach (GANG-ZHI FAN ET AL January 2006) is most commonly used and has been utilized extensively to investigate the relationship between house prices and housing characteristics. However, this approach is subject to criticisms arising from potential problems relating to fundamental model assumptions and estimation such as the identification of supply and demand, market disequilibrium, the selection of independent variables, the choice of functional form of hedonic equation and market segmentation. Tokyo and Sydney are to be the two typical examples to illustrate the determinant of the housing price. Especially we will analyses from more specific, for an instance: housing boom and public policies. Determinants in Sydney and Tokyo: To extend more widely and more specific about the determinants of the house price, we will illustrate Sydney and Tokyo as the particular example to investigate with. Firstly, compare to the hedonic regression the demand and supply equilibrium would use to determinate these complexities. Basically both city would use demand and supply model to constitute with their circumstance to determinate the prices. But both cities use the different variables to determined the price here As the TSUNAO OKUMURA ( July 1996) stated in ‘Housing Investment and Residential Land Supply in Japan: An Asset Market Approach.’ , it is shown that housing price can determined by the market equilibrium is defined by ‘(i) the household optimization behavior, from which the demand for housing stock and residential land is derived, and (ii) housing industry optimization behavior, from which housing investment and the supply of residential land are derived.

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