Property price dynamics and asymmetric effects of economic policy uncertainty: New evidence from the Australian capital cities

This paper examines the long-run relationship between residential property prices and economic policy uncertainty (EPU) in seven Australian capital cities. Using panel nonlinear autoregressive distributed lag model, we analyse asymmetric effect of EPU on house apartment (unit) over period 2001–2021. The is found to affect negatively; however, effects positive changes are larger than those negative EPU. evidence particularly strong for unit prices. Our results reveal that interest rates, construction costs housing loans also drive price trends.