INTERNAL AND EXTERNAL DETERMINANTS OF HOUSING PRICE BOOM IN HONG KONG

Farhad Taghizadeh-Hesary, Naoyuki Yoshino, Aline Mortha, Alvin Chiu and Niki Naderi
Additional contact information
Farhad Taghizadeh-Hesary: Waseda University [Tokyo]
Alvin Chiu: King‘s College London
Niki Naderi: Azad University [Tehran]

Post-Print from HAL

Abstract: Hong Kong's housing market witnessed a dramatic housing price appreciation in recent years, with the price index for private domestic housing units being three times higher than ten years ago. This trend is supported by both internal and external factors, as illustrated in this paper. By developing a theoretical model and an empirical analysis on the key variables influencing housing prices using monthly data from 1999 to 2018, we find that the main drivers of housing price appreciation are from the demand side and include income level, money supply and inflation. The main contribution of this study is the quantification of the role of Mainland China's macroeconomic factors in housing price booms in Hong Kong. Our study shows that capital inflow from and inflation and recessions in Mainland China contribute to increasing housing prices in Hong Kong because the city's real estate is seen as a way to preserve asset value. These findings call for the need for control of capital inflow between the two economies as well as for stricter regulations against empty houses in Hong Kong.

Date: 2020-12-31
References: Add references at CitEc
Citations:

Published in Buletin Ekonomi Moneter dan Perbankan, 2020, 23 (4), pp.597-620. ⟨10.21098/BEMP.V23I4.1043⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Internal and External Determinants of Housing Price Boom in Hong Kong (2020)
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:hal:journl:hal-05526263

DOI: 10.21098/BEMP.V23I4.1043

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().