Ontology, Policy and the Market: Trends to Home-ownership in Hong Kong

Adrienne La Grange and Frederik Pretorius
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Adrienne La Grange: Department of Public and Social Administration, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong, saalag@cityu.eduhk
Frederik Pretorius: Department of Real Estate and Construction, University of Hong Kong, Pokfulam Road, Hong Kong, fredpre@hkucc.hku.hk

Urban Studies, 2000, vol. 37, issue 9, 1561-1582

Abstract: An important trend in housing delivery internationally has been rising rates of home-ownership. In Hong Kong, owner-occupation has expanded rapidly over the past two decades, and this is expected to continue. This paper seeks to account for trends to home-ownership in Hong Kong. It is proposed that two principal factors account for rates of home-ownership internationally: the interaction and combined outcome of housing affordability and household preferences—the 'market explanation' for tenure choice; and the 'ontological explanation' of home-ownership as a preferred household tenure choice, which assumes that ownership is the innately preferred tenure form. On face value, Hong Kong presents a relatively persuasive case for the ontological explanation for trends to home-ownership. Yet the findings of this paper suggest that the decision to buy appears to be systematically explicable by market factors: in the private sector, primarily by investment considerations, namely high returns to residential property investment and favourable user cost of housing capital; and, in the public sector, by a very fine-grained approach to household affordability with publicly assisted home-ownership initiatives. Hong Kong demonstrates again how carefully families weigh the bundle of services associated with their tenure options. The government plans to expand home-ownership further, yet there are major systemic implications for such an expansion.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:37:y:2000:i:9:p:1561-1582

DOI: 10.1080/00420980020080261

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