Global Housing Markets: Crises, Policies, and Institutions


The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals. As part of the Robert W. Kolb Series in Finance, Global Housing Markets provides a practical understanding of how housing markets and financial systems in different countries were affected by the recent global financial crisis and examines the role that specific policies and institutions played in this event.

While the financial crisis was global, housing markets are local, and the primary geographic unit of analysis in this book's chapters are national—although in some cases, examples of sub-regional and urban housing markets in those countries are presented.

Divided into five comprehensive parts, this timely guide opens with a detailed discussion of the housing market experience in the United States and how the country was the epicenter of the global financial crisis. From here, you'll gain valuable insights into how the contagion spread to housing markets around the world, the paths it took to do so, and the institutional and regulatory context in which policy measures were adopted in response to the spreading crisis.

The expert team of contributors assembled here touch on everything from how European countries such as Spain and Germany each experienced a different combination of distress in their financial and housing markets; what the impact of the crisis was on both large and small Asian countries; and why certain countries, including Australia and Canada, showed certain levels of immunity to the crisis.

If you want an international perspective on the crises, policies, and institutions that have recently shaped the global housing markets—and want to draw some important lessons from the events that have transpired in the process—then this is the book you need to read.

Ashok Bardhan is Senior Research Associate, Fisher Center for Real Estate and Urban Economics, Haas School of Business, University of California, Berkeley.

Robert H. Edelstein is Professor, Maurice Mann Chair in Real Estate, Haas School of Business, University of California, Berkeley.

Cynthia A. Kroll is Executive Director, Staff Research and Senior Regional Economist, Fisher Center for Real Estate and Urban Economics, Haas School of Business, University of California, Berkeley.

Acknowledgments ix

Editor’s Note xi

1 The Financial Crisis and HousingMarkets Worldwide: Similarities, Differences, and Comparisons 1
Ashok Bardhan, Robert H. Edelstein, and Cynthia A. Kroll

PART I The United States Leads the Housing Bubble’s Rise and Collapse

2 The U.S. HousingMarket and the Financial Crisis 23
Ashok Bardhan, Robert H. Edelstein, and Cynthia A. Kroll

PART II The European Union—One Continent, Many Markets: A Gauge of Government Institutions and Interventions

3 The 2008 Financial Crisis and the Danish Mortgage Market 53
Jacob Gyntelberg, Kristian Kjeldsen, Morten Baekmand Nielsen, and Mattias Persson

4 Prolonged Crisis 69
Thies Lindenthal and Piet Eichholtz

5 The Dynamics of the Irish HousingMarket 101
Simon Stevenson

6 House Prices and Market Institutions: The Dutch Experience 135
Dirk Brounen and Piet Eichholtz

7 Real Estate Boom and Crisis in Spain 157
Antoni Sureda-Gomila

8 The UK and Europe’s Selective Housing Bubble 173
Christine Whitehead and Kathleen Scanlon

PART III Eastern Europe: European Emerging Markets Ride the Waves

9 The HousingMarket in Russia: Lessons of the Mortgage Crisis 195
Nadezhda Kosareva and Andrey Tumanov

10 The HousingMarket and Housing Finance in Russia and Its Regions: A Quantitative Analysis 229
Carsten Sprenger and Branko UroÇsevi´c

11 The HousingMarket in Serbia in the Past Decade 247
Dejan SÇosÇkic´, Branko UrosÇevic´, BosÇko ZÇ ivkovic´, and MilosÇ BozÇovic´

PART IV Asia Housing Bubbles Past, Present, and Future: Contrasts among Asian Economic Giants

12 Irrational Prosperity, HousingMarket, and Financial Crisis: An Empirical Study of Beijing 271
Lu Ping, Zhen Hui, and Xu Yuehong

13 HomeMortgage and Real Estate Market in Shanghai 295
Jie Chen

14 Evolution of the Indian Housing Finance System and HousingMarket 319
R. V. Verma

15 The HousingMarket and Housing Finance under Liberalization in India 343
C. P. Chandrasekhar

16 The Recent Financial Crisis and the HousingMarket in Japan 357
Miki Seko, Kazuto Sumita, and Michio Naoi

PART V Managing Housing Bubbles and Housing Markets in Diverse Asian Economies

17 Comparing Two Financial Crises: The Case of Hong Kong Real Estate Markets 377
Charles Ka Yui Leung and Edward Chi Ho Tang

18 The Global Financial Crisis and the Korean Housing Sector: How Is This Time Different from the 1997 Asian Financial Crisis? 399
Kyung-Hwan Kim

19 Government Policy, Housing Finance, and Housing Production in Singapore 421
Lum Sau Kim

20 Taiwan: Housing Bubbles and Affordability 447
Chin-Oh Chang and Ming-Chi Chen

PART VI Avoiding Contagion in Other Markets

21 Australia’s Economic Response to the Global Financial Crisis and Its HousingMarkets 467
Dogan Tirtiroglu

22 The Financial Crisis and Brazil’s Expanding HousingMarket 491
Emilio Haddad and Joao Meyer

23 The Canadian HousingMarket: No Bubble? No Meltdown? 511
Tom Carter

24 Partly Cloudy to Clear: The Israeli Economy and the Local HousingMarket under the Storm of the World Financial Crisis 535
Danny Ben-Shahar and Jacob Warszawski

Index 557