Abstract:
This paper examines whether there was contagion from the Thai securitised real estate
market to four other prominent Asia-Pacific property markets. Based on Forbes and Rigobon's
methodology for calculating conditional and unconditional correlations, analysis shows that there
was some contagion effect from Thailand to Hong Kong and Singapore during the period between
early July and late October 1997. However, if the period indudes the stock market crisis of late
October 1997, there is little evidence for real estate market contagion, as it would seem that the
impact of the equity markets were more relevant thereafter, in affecting other financial markets
than the property markets themselves.
