House Prices in ASEAN+3: Recent Trends and Inter-Dependence
- House Prices in ASEAN+3: Recent Trends and Inter-Dependence
- Cho, Dongchul
- House Price; Global Recession; Contagion
- Issue Date
- Series/Report no.
- KDI Working Paper Series;09-12
- This study analyzes house price movements in the ASEAN+3 countries. Though
there exist many reservations due to the serious limitations in the data quality and
availability, the primary results appear to imply that the possibility of collapse in the
ASEAN+3 region’s house prices is smaller than those in the U.S. and European
countries. However, it seems also legitimate to call policy-makers’ attention on house
prices in the ASEAN+3 region. Although relatively less serious than in the U.S. and
European countries, the absolute magnitudes of house price appreciations in the region
were substantial, and the current turmoil in housing markets in the U.S. and European
countries is very likely to generate global recession, which will indirectly affect the
region’s house prices through lowering growth rates of the member countries. Once
house prices begin to decline in one of the countries, house prices in neighbor countries
will be likely to be affected. If the possibility of house price corrections needs to be
reduced, a traditional package of boosting policies --- lowering interest rates and
increasing government spending --- seems to be warranted.
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