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.