Intercity Information Diffusion and Price Discovery in Housing Markets: Evidence from Google Searches

  • Jing Wu
  • Yongheng Deng


We provide an innovative measure of information flow in Chinese housing markets based on search records from the Internet search engine Google. The measure depicts a substantial flow of house-price related information from national “superstar” cities, such as Beijing and Shanghai, and regional “star” cities, such as Tianjin and Chongqing, to other “normal” cities. The empirical results based on Granger causality test and turning point detection analysis both suggest that such information diffusion is a key factor that influences the intercity house price discovery process in the short run. The “superstar” and “star” cities lead the country in terms newly-built house prices changes in the sample period between 2006 and 2011.


Information diffusion Price discovery House price Google searches 



We thank the referee and the editor, Kelvin Wong, Yuichiro Kawaguchi and participants in the 2012 Asia-Pacific Real Estate Research Symposium, the 2012 GCREC Annual Conference and the 2012 AREUEA-AsRES Joint Conference for helpful comments. The authors thank the Institute of Real Estate Studies at National University of Singapore for financial support. Wu also thanks the National Natural Science Foundation of China for financial support (No. 71003060 & 71373006).


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Hang Lung Center for Real Estate and Department of Construction ManagementTsinghua UniversityBeijingChina
  2. 2.Institute of Real Estate Studies, NUS Business School, and School of Design and EnvironmentNational University of SingaporeSingaporeSingapore

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