Abstract
Housing prices in Hong Kong have gained international attention. This study suggests that the housing supply may be insufficient. Consistent with previous studies, we confirm that merely increasing the land supply may not increase the housing supply. We also find preliminary evidence for widening income inequality, which, when combined with unavailability, can lead to unaffordability in the housing market. Given the current housing supply elasticity with respect to price, Hong Kong is not more volatile than major cities in the United States. Thus, by improving housing availability and thereby increasing housing supply elasticity, this could effectively decrease housing price volatility.
| Original language | English |
|---|---|
| Pages (from-to) | 383-428 |
| Journal | International Real Estate Review |
| Volume | 18 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Sept 2015 |
Bibliographical note
Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].Research Keywords
- Granger Causality
- Housing Affordability
- Housing Availability
- Housing Volatility
- Land Policies
