Nazif Durmaz

Department of Marketing, Global Business, & Economics, 

Kean University,

USA

ndurmaz@kean.edu

ORCID 0000-0003-2835-6191

Does economic policy uncertainty affect housing prices? Evidence from Asia-Pacific countries

Feier Sun

Department of Marketing, Global Business, & Economics, 

Kean University,

USA

sunf@kean.edu

Abstract. The present study utilises quarterly data from 1990 to 2022 to examine the relationship between household income, interest rates, and economic policy uncertainty (EPU) on housing prices in New Zealand, South Korea, Japan, Australia, China, and Singapore. The empirical analysis is carried out using the Autoregressive Distributed Lag (ARDL) bounds testing approach for cointegration. The results further indicate that economic policy uncertainty has both long-term and short-term positive effects on house prices. However, in New Zealand, economic policy uncertainty is found to harm house prices, while in Australia, it has a short-term negative impact on house prices. The findings offer compelling support for the significant influence of economic policy uncertainty on the dynamics of real estate markets across the Asia-Pacific region.

Received: February, 2024

1st Revision: December, 2024

Accepted: March, 2025

DOI: 10.14254/2071-8330.2025/18-1/1

JEL Classification: C22, G10, R30

Keywords: economic policy uncertainty, house prices, ARDL