Asset Price Bubbles: Housing Markets Data
|Author:||Mgr. Jakub Mrhal|
|Year:||2013 - summer|
|Leaders:|| prof. Ing. Oldřich Dědek CSc.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This study assess Prague real estate market from price level bubble existence point of view. For this
purpose construct loglinear regression models for estimating price level of purchase and renting for
several segments on the real estate market. These estimated price levels afterwards compare to
theoretical price levels set by user cost concept, which employs fundamental factors such as capital
costs, depreciation rates, personal income and property taxes, additional asset risk and expected capital
gain. Study concludes that Prague real estate market does not currently experience positive price bubble,
even one of the segments assess as underpriced.