This research paper’s goal is to investigate the causal effect of the May 2021 COVID-19 outbreak on housing prices in Wanhua district in Taipei City, Taiwan. By utilizing Difference-in-Differences analysis, the research compared the changes in housing prices in Wanhua district to other districts in Taipei. This study utilizes data of all actual housing sales transactions from 2012 to 2022. It will determine the effect of government policies, media coverage, and public perception on the housing prices in Wanhua after the May 2021 outbreak.
The analysis shows that there are different effects of the pandemic on housing prices for each type of property. Type 1 (above 10 stories with elevators) shows a statistically significant increase in housing prices, while Type 3 (under 5 stories with no elevators) shows a significant decrease. Type 5 (studio apartments) and Type 9 (under 10 stories with elevators) shows no statistically significant change. The findings shows that each type of property has a distinct effect from the COVID-19 outbreak, showing Type 1 and Type 3 as the most affected. The result suggests that there may be varying effects of the pandemic on different types of properties.
Overall, this study provides insights into the impact of the COVID-19 pandemic on the housing market in Taipei and sheds light on the factors driving housing prices. The results can provide a basis for further research into the effects of the pandemic on the housing market.

Contents
Abstract ............................................................................................................................... 2
Acknowledgements ............................................................................................................. 4
List of Figures ..................................................................................................................... 7
List of Tables ...................................................................................................................... 7
Chapter 1 Introduction ........................................................................................................ 8
Chapter 2 Literature Review ............................................................................................. 10
Chapter 3 Methodology: Data Descriptions, Research Designs, and Limitations ............ 14
3.1 Data Descriptions .................................................................................................... 14
3.2 Research Design ...................................................................................................... 16
3.3 Assumptions and Limitations .................................................................................. 17
Chapter 4: Model Specifications and Empirical Results .................................................. 19
4.1 Empirical Model Specification ................................................................................ 19
4.2 Parallel Trend Assumption ...................................................................................... 21
Chapter 5: Empirical Results ............................................................................................ 23
5.1 Model 1: DID model for all transaction with one to four bedrooms. ............................................. 23
5.2 Model 2: DID model factoring in the types of properties (all bedroom layouts). .......................... 24
5.3 Model 3: DID model factoring in the most common types of properties, and bedroom layouts. ... 25
Chapter 6: Conclusion, Implications, and Limitations ..................................................... 27
References ......................................................................................................................... 29

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