Author(s)

Jinjin Guo, Xiaohui Sun, Tingting Wang, and Baozhen Liu

Corresponding Author

Xiaohui Sun

ABSTRACT

Based on the Shanghai housing price index of SouFun from January 2005 to November 2018, this paper uses GSADF method to test and measure the housing price bubble in Shanghai. The results show that during the sample study period, 67 out of 167 months housing prices in Shanghai showed different degrees of bubbles. There were six bubbles occurred during the study period. The most serious bubble occurred in April 2010, with the maximum bubble peak of 7.5. The longest bubble lasted six months, from August 2015 to January 2018. The government should take corresponding measures to stabilize the housing price and to avoid bubbles in Shanghai by increasing the supply of housing and establishing the long-term mechanism of housing market.

KEYWORDS

Housing price bubble; GSADF inspection; Housing bubble