Property prices, housing policies for collateral and resale constraints

Eddie C. M. Hui; Jiawei Zhong; Kahung Yu

doi:10.3846/1648715X.2016.1249984

Property prices, housing policies for collateral and resale constraints

Eddie C. M. Hui^*
, Jiawei Zhong
, Kahung Yu

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

6 Citations (Scopus)

8 Downloads (CityUHK Scholars)

Abstract

The question of whether significant impacts of Loan-to-value (LTV) ratio and Special Stamp Duty (SSD) on residential property market prices exist has been hotly debated. This study aims to investigate the long-term and short-term impacts of LTV ratio and SSD on property prices in Hong Kong. In the study period, the interest rate is low, and the growth rate of housing mortgage is slower than the growth rate of market prices. The findings indicate that changes in LTV ratio cannot change the potential purchasers’ willingness to purchase housing flats over the past ten years. SSD, on the other hand, only have a more prominent long-term impact on larger properties (more than 70 m²) by directly reducing the transaction volumes, compared with that on smaller (less than 70 m²) ones. © 2017 Vilnius Gediminas Technical University (VGTU) Press.

Original language	English
Pages (from-to)	115-128
Journal	International Journal of Strategic Property Management
Volume	21
Issue number	2
DOIs	https://doi.org/10.3846/1648715X.2016.1249984
Publication status	Published - 3 Apr 2017
Externally published	Yes

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].

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 11 Sustainable Cities and Communities

Research Keywords

Error correction model
Loan-to-value ratio
Residential property prices
Special Stamp Duty

Publisher's Copyright Statement

This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/

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10.3846/1648715X.2016.1249984

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title = "Property prices, housing policies for collateral and resale constraints",

abstract = "The question of whether significant impacts of Loan-to-value (LTV) ratio and Special Stamp Duty (SSD) on residential property market prices exist has been hotly debated. This study aims to investigate the long-term and short-term impacts of LTV ratio and SSD on property prices in Hong Kong. In the study period, the interest rate is low, and the growth rate of housing mortgage is slower than the growth rate of market prices. The findings indicate that changes in LTV ratio cannot change the potential purchasers{\textquoteright} willingness to purchase housing flats over the past ten years. SSD, on the other hand, only have a more prominent long-term impact on larger properties (more than 70 m2) by directly reducing the transaction volumes, compared with that on smaller (less than 70 m2) ones. {\textcopyright} 2017 Vilnius Gediminas Technical University (VGTU) Press.",

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TY - JOUR

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AU - Hui, Eddie C. M.

AU - Zhong, Jiawei

AU - Yu, Kahung

N1 - 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].

PY - 2017/4/3

Y1 - 2017/4/3

N2 - The question of whether significant impacts of Loan-to-value (LTV) ratio and Special Stamp Duty (SSD) on residential property market prices exist has been hotly debated. This study aims to investigate the long-term and short-term impacts of LTV ratio and SSD on property prices in Hong Kong. In the study period, the interest rate is low, and the growth rate of housing mortgage is slower than the growth rate of market prices. The findings indicate that changes in LTV ratio cannot change the potential purchasers’ willingness to purchase housing flats over the past ten years. SSD, on the other hand, only have a more prominent long-term impact on larger properties (more than 70 m2) by directly reducing the transaction volumes, compared with that on smaller (less than 70 m2) ones. © 2017 Vilnius Gediminas Technical University (VGTU) Press.

AB - The question of whether significant impacts of Loan-to-value (LTV) ratio and Special Stamp Duty (SSD) on residential property market prices exist has been hotly debated. This study aims to investigate the long-term and short-term impacts of LTV ratio and SSD on property prices in Hong Kong. In the study period, the interest rate is low, and the growth rate of housing mortgage is slower than the growth rate of market prices. The findings indicate that changes in LTV ratio cannot change the potential purchasers’ willingness to purchase housing flats over the past ten years. SSD, on the other hand, only have a more prominent long-term impact on larger properties (more than 70 m2) by directly reducing the transaction volumes, compared with that on smaller (less than 70 m2) ones. © 2017 Vilnius Gediminas Technical University (VGTU) Press.

KW - Error correction model

KW - Loan-to-value ratio

KW - Residential property prices

KW - Special Stamp Duty

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DO - 10.3846/1648715X.2016.1249984

M3 - RGC 21 - Publication in refereed journal

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SP - 115

EP - 128

JO - International Journal of Strategic Property Management

JF - International Journal of Strategic Property Management

IS - 2

ER -

Property prices, housing policies for collateral and resale constraints

Abstract

Bibliographical note

UN SDGs

Research Keywords

Publisher's Copyright Statement

Policy Impact

Access Output

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