Can government stabilize the housing market? The evidence from South Korea

Hanwool Jang, Yena Song*, Kwangwon Ahn*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)


This study aims to examine the effectiveness of government policies in stabilizing the housing market in South Korea. Analysis of condominium prices between 2012 and 2019 in conjunction with housing policy and regime changes reveals that: (1) housing policies effectively restrained the rapid increase of housing prices; (2) market efficiency was also improved; and (3) finally, housing prices approached close to long-run equilibrium. Our findings strongly indicate that government policies can be effective tools to stabilize housing prices, as well as improve market conditions.
Original languageEnglish
Article number124114
Number of pages8
JournalPhysica A: Statistical Mechanics and its Applications
Early online date2 Jan 2020
Publication statusPublished - 15 Jul 2020


  • Housing policy
  • Bubble
  • Long-run equilibrium
  • Market efficiency


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