Identification of Real Estate Bubbles in Indonesia
Background: Significant increases in demand for real estate affects it’s market price. Rapid growth of real estate prices caused some economists to analyse the possibility of real estate price bubbles in the market. Purpose: The purpose of this research was to identify the existence of real estate p...
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| Main Authors: | , |
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| Format: | Article PeerReviewed |
| Language: | English English Indonesian |
| Published: |
Primrose Hall Publishing Group
2020
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| Subjects: | |
| Online Access: | https://repository.unair.ac.id/122426/4/WisnuWibowo_Artikel201_Identification-of-Real.pdf https://repository.unair.ac.id/122426/5/WisnuWibowo_Similarity201_Identification-of-Real.pdf https://repository.unair.ac.id/122426/6/WisnuWibowo_KualitasKaril201.pdf https://repository.unair.ac.id/122426/ https://www.ijicc.net/index.php/ijicc-editions/2020/160-vol-11-iss-9 |
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| Institution: | Universitas Airlangga |
| Language: | English English Indonesian |
| Summary: | Background: Significant increases in demand for real estate affects it’s market price. Rapid growth of real estate prices caused some economists to analyse the possibility of real estate price bubbles in the market. Purpose: The purpose of this research was to identify the existence of real estate price bubbles in Indonesia in 2003-2013. This research was also to analyse factors determining Indonesian real estate prices. Method: This research used the time series econometric method of Vector Error Correction Model (VECM) with 2003-2013 of time series data. A quantitative approach was used to test hypotheses using measured data and would generate a generalisable conclusion. The quantitative approach was done in the form of a statistical approach and a time series econometric approach. The type of statistical approach used was the regression analysis model to examine the relationship between the tested variables.
Result: The data showed that Indonesia real estate prices in 2003-2013 had a bubble although this bubble did not endanger the economy because it was still below an international safe threshold. Factors determining real estate prices were Gross Domestic Product, lending rates, and speculation-influenced real estate price growth.
Conclusion: There were real estate speculative bubbles in Indonesia in 2003-2013 but the speculation level in the housing market did not exceed the international threshold, while the speculation-influenced house price growth had the greatest effect on house price fluctuations. |
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