The Nexus between Visitor Arrivals and Residential Property Rents in Hong Kong

Chong, Terence Tai Leung and Yiu, Alex Wing-Ho (2017): The Nexus between Visitor Arrivals and Residential Property Rents in Hong Kong. Forthcoming in: Pacific Economic Review

Abstract

Cost of living in Hong Kong is among the highest in the world. This paper investigates the effect of tourist arrivals on the residential property market in Hong Kong. It is demonstrated that the soaring number of tourists from mainland China is pushing up property rents in Hong Kong. The substantial accommodation need generated by the increasing number of students from China is another contributing factor.

• Item Type: MPRA Paper
• Language: English
• Keywords: Residential property rent; Retail property rent; Instrumental variable
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics

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