Price discovery in the Hong Kong real estate market

K.W. Chau, Bryan D. MacGregor and Gregory M. Schwann

Journal of Property Research, 2001, vol. 18, issue 3, 187-216

Abstract: This paper examines price discovery for four sectors of the Hong Kong property market. The Hong Kong property market is one of the deepest and most liquid markets in the world. In addition, a substantial proportion of the real estate sector is securitized in the local share market. This makes Hong Kong one of the better places to examine price discovery. The results show that the returns to securitized real estate in Hong Kong are a mirror of broader international capital market movements. Once international capital market variables are included in the regressions, the returns to securitized real estate in Hong Kong convey little information about the appraisal-based returns to Hong Kong real estate. In addition, the results show that both capital market variables and local economic variables are significant for explaining the appraisal-based returns to Hong Kong property. The two sets of variables account for from 58% and 87% of the total variation in returns, with capital market factors contributing between 32% and 75% to the explanatory power.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1080/09599910110060064 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jpropr:v:18:y:2001:i:3:p:187-216

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJPR20

DOI: 10.1080/09599910110060064

Access Statistics for this article

Journal of Property Research is currently edited by Bryan MacGregor

More articles in Journal of Property Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().