Over the last few decades, exuberance (bubble) and spillovers (ripple effects) have both
been observed in the overheated housing market. However, surprisingly few attempts have
so far been made to integrate these two concepts to further explore China's housing market
frenzies. According to growth poles, the causality between exuberance and spillovers in real
estate markets is that capital is initially concentrated in first-tier cities, but the housing-price
exuberance then leads to spillovers to second-tier cities. Using housing price and rental …