The nexus between stock price, condominium price and GDP: A case study of Singapore

This paper analyses the dynamic short-run and long-run interactions between stock price, condominium price and GDP for the economy of Singapore. Using cointegration and standard Granger-causality tests, we found a short-run bi-directional Granger causality between stock and condominium prices. Both types of assets were also found to Grangercause GDP in the short-run. Meanwhile, GDP was found to have long-run implications for stock market development, but no short-run nor long-run influence on condominium markets. Our findings lead to some practical and policy implications.