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An Empirical Study of the Determinants of Sydney’s Dwelling Price

Author/s: Angelo Karantonis, Xin Janet Ge

Date Published: 1/01/2007

Published in: Volume 13 - 2007 Issue 4 (pages 493 - 509)

Abstract

Australian dwelling prices have increased substantially since the early 1990s, making housing less affordable for many potential home buyers. This study aims to identify the main determinant factors that drove the dwelling prices upwards in Sydney from 1992 to 2006. The findings suggest that real household income, dwelling completions, speculative investment and real interest rate are the main variables influencing the increase of dwelling prices in Sydney. Amongst the findings is that there is a need for policy makers to improve the supply of dwellings to accommodate the growing demand of housing in Sydney.

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Keywords

Affordability - Dwelling Prices - Housing Demand and Supply - Housing Prices - Multiple Regression Analysis

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