This study examines the long-run and short-run relationships between housing prices and transaction volume in TaiwanRegion’s six special municipalities using quarterly data from 2011 to 2024. The results indicate that housing prices and transaction volume are cointegrated in all cities, although both the direction of the relationship and the adjustment mechanisms vary across municipalities. In most cities, housing prices and transaction volume exhibit negative long-run co-movement, whereas Taoyuan City displays a positive relationship. The VECM results further reveal that the adjustment process differs across regions: transaction volume drives adjustment in some cities, housing prices in others, and no stable adjustment mechanism is observed in certain cases. Shortrun dynamics also vary across municipalities, highlighting substantial heterogeneity in housing market behavior.
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