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Table 5 Fixed-effect panel regression—residential housing

From: Interest rates and real estate prices: a panel study

Segments

Rental apartments

Houses

Owner-occupied flats

Dependent variable

Log of median sqm rental price

Log of median sqm prices

Log of median sqm prices

Variables

(1)

(2)

(1)

(2)

(3)

(1)

(2)

(3)

Location and market rating

0.0243***

(0.0066)

0.0243***

(0.0066)

0.0421***

(0.0095)

0.0421***

(0.0095)

0.0607***

(0.0111)

0.0425***

(0.0114)

0.0425***

(0.0114)

0.0638***

(0.0112)

Investment per resident

0.0265***

(0.0057)

0.0265***

(0.0057)

0.0071

(0.0106)

0.0071

(0.0106)

0.0041

(0.0124)

0.0263**

(0.0087)

0.0262**

(0.0087)

0.0226*

(0.0109)

Housing stock

0.0021

(0.0012)

0.0021

(0.0012)

0.0054**

(0.0017)

0.0054**

(0.0017)

0.0049**

(0.0017)

0.0058**

(0.0019)

0.0058**

(0.0019)

0.0048*

(0.0020)

Vacancy rate

 − 0.0035

(0.0041)

 − 0.0035

(0.0041)

 − 0.0386*

(0.0176)

 − 0.0386*

(0.0176)

 − 0.0221

(0.0150)

0.0094

(0.0212)

0.0094

(0.0213)

0.0044

(0.0216)

Population growth

 − 0.0153

(0.0087)

 − 0.0153

(0.0087)

 − 0.0137

(0.0155)

 − 0.0137

(0.0155)

 − 0.0048

(0.0116)

 − 0.0599***

(0.0171)

 − 0.0599***

(0.0171)

 − 0.0352*

(0.0158)

Building applications

0.0010

(0.0006)

0.0010

(0.0006)

 − 0.0004

(0.0016)

 − 0.0004

(0.0016)

0.0008

(0.0013)

0.0008

(0.0007)

0.0008

(0.0007)

0.0010

(0.0006)

Yields governmental bonds (10 Y)

 − 0.0.0038***

(0.0009)

 

 − 0.0066***

(0.0011)

  

 − 0.0148***

(0.0013)

  

Variable mortgage rates

   

 − 0.0146***

(0.0041)

  

 − 0.0224***

(0.0046)

 

Spread residential

 

0.0043***

(0.0009)

      

Fixed mortgage rates (10 Y)

    

 − 0.0098***

(0.0013)

  

 − 0.0176***

(0.0017)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Quarter dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Region fixed effects

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Adj. R2

0.765

0.764

0.850

0.850

0,795

0.895

0.895

0.865

N

5936

5936

5936

5936

4664

5936

5936

4664

  1. Displayed coefficients are the results of a panel fixed-effect regression model including regional fixed effects for each MS-region. Robust standard errors are displayed in brackets. In models (1) and (2), the time frame was limited to 56 quarters from 2005 Q1 to 2018 Q4. In model (3) for houses and owner-occupied flats, the time frame was limited to 44 quarters from 2008 Q1 to 2018 Q4. Signif. codes: “***” 0.001, “**” 0.01, “*” 0.05, “.” 0.1