This paper aims to test the effect of real interest rate on housing return, by using the differencing model for eliminating the effects of other factors. Even though the relationship has been tested before, but it is hard to eliminate other factors when studying the effect of real interest rate...

This paper tests empirically the relationship between real interest rate and housing return in Hong Kong. The time series date from the first quarter of 1984 to the first quarter of 2009. Employing multiple regression analysis with autoregressive and lagged independent variables, it shows that...

There are substantial rebounds in house prices in many developed economies after the outbreak of COVID-19. It provides a special opportunity to test the real interest rate hypothesis empirically as a “synchronized” price rebound implies a common cause of house price hikes across the...