Modeling the Dynamics of the Hong Kong Office Market under Economic Structural Change

Winky K O Ho
Additional contact information
Winky K O Ho: Department of Real Estate and Construction, School of Economics and Finance, University of Hong Kong, Pokfulam Road, Hong Kong SAR, China

Environment and Planning B, 2005, vol. 32, issue 1, 111-125

Abstract: The author adopts reduced-form equilibrium models to investigate the relations among vacancy, employment, space consumption, and rent in the Hong Kong office market under economic structural change. The models are estimated with the aid of data from Hong Kong during the period 1980–2002—a total of twenty-three yearly observations. It is hoped that empirical results will shed light on the adjustment mechanism of the local office market. In line with the existing literature, the author shows that, on the one hand, office rent is positively related to office employment, but inversely related to office stock. On the other hand, the demand for office space is inversely related to rent, but positively related to office employment. Moreover, the elasticity of space consumption with respect to rent is estimated to be inelastic. Historical simulations of the model are performed, and it is suggested that the equations simulate reasonably well as indicated by Theil's inequality.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1068/b3198 (text/html)

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:sae:envirb:v:32:y:2005:i:1:p:111-125

DOI: 10.1068/b3198

Access Statistics for this article

More articles in Environment and Planning B
Bibliographic data for series maintained by SAGE Publications ().