Low- frequency versus high-frequency housing price spillovers in China

Applying a novel high-dimensional frequency-domain-based spillover index approach, this paper explores low-frequency versus high-frequency housing price spillovers among 70 Chinese cities. Intensive interactions among these cities were dominated by high-frequency spillovers around the end of 2015, while low-frequency spillovers have dominated since 2016. This coincided with dramatic changes in government policies, particularly the abolition of the 'one-child' policy. Furthermore, city-level economic factors were the primarily significant determinants of high-frequency housing price spillovers within several months, while education was a major determinant of low-frequency housing price spillovers in China, which was consistent with the distinction between work-based and education-based migration in China.