A study on the impact of dynamic changes in the death rate of confirmed COVID-19 patients on apartment sales prices

This study examines the impact of an increasing COVID-19 death rate on apartment sales prices. Using monthly time-series data from January 2020 to August 2023 and employing a cointegration test and a Vector Error Correction (VEC) model, the results reveal that while a rising death rate initially exerted a negative influence on apartment sales prices, policy measures aimed at stimulating the economy—namely, expanding the money supply and lowering interest rates—ultimately led to a long-term increase in prices. Subsequently, the surge in inflation and the accompanying interest rate hikes following the Russia-Ukraine war resulted in a downturn in apartment sales prices. In other words, changes in monetary policy driven by the pandemic, coupled with external shocks, collectively induced both upward and downward fluctuations in apartment prices. By shedding light on the interplay between monetary policy and the housing market amid infectious disease crises, this study enhances our understanding of these dynamics and provides valuable insights for future policy formulation.