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Bibliographic Details
Main Author: RONALDO LAMOUNIER LOCATELL
Format: Artículo científico
Language:en
Published: Universidade Presbiteriana Mackenzie 2017
Subjects:
Online Access:https://www.redalyc.org/articulo.oa?id=195451649009
https://www.redalyc.org/journal/1954/195451649009/
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https://www.redalyc.org/journal/1954/195451649009/195451649009.epub
https://www.redalyc.org/journal/1954/195451649009/movil
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Table of Contents:
  • REAL ESTATE MARKET OF A BRAZILIAN METROPOLIS: SUSTAINED GROWTH OR SPECULATIVE BUBBLE? RONALDO LAMOUNIER LOCATELL HAROLDO MARCIO INÊS JOSÉ EDSON LARA FERNANDO TADEU PONGELUPE NOGUEIRA Administración y Contabilidad to Rent VECM Index Price Financial crisis Purpose: To analyze the real estate sector of a Brazilian metropolis in the recent period of great valuation of the asset in the country and to inves- tigate if there are signs of a speculative bubble in this market. Originality/gap/relevance/implications: This article presents a version of the Case-Shiller Index, which describes the evolution of the rela - tionship between house prices and rental prices and uses models in order to identify if the rise in property prices rests on good economic fundamentals. Key methodological aspects: The approach is quantitative and involves the construction of the price-rent index, unit root test with an instru - ment that allows structural break with trend (Innovation Outlier Model) and analysis of cointegration using estimates of a Vector Error Correc- tion Model (VECM). Summary of the results: The results do not favor the interpretation that the real estate market rests on solid economic fundamentals. On the contrary, the evolution of the price-rent index and the lack of causal relationship of rents to prices towards long-term equilibrium are sugges- tive of the existence of a speculative bubble. Key considerations/conclusions: The results support authors who are cri- tical to the efficient market hypothesis (EMH) and suggest that the rela- tive increase in property prices stems only from the belief that their selling price will be higher in the future. It is therefore foreseeable a decrease of real prices of housings, with equity losses for the partici - pants in that market. 2017 artículo científico 1518-6776 https://www.redalyc.org/articulo.oa?id=195451649009 https://www.redalyc.org/journal/1954/195451649009/ https://www.redalyc.org/journal/1954/195451649009/html/ https://www.redalyc.org/journal/1954/195451649009/195451649009.epub https://www.redalyc.org/journal/1954/195451649009/movil en http://www.redalyc.org/revista.oa?id=1954 RAM. Revista de Administração Mackenzie application/pdf Universidade Presbiteriana Mackenzie RAM. Revista de Administração Mackenzie (Brasil) Num.2 Vol.18