What do we know about Housing Supply? The case of Hong Kong

Leung, Charles Ka Yui and Ng, Joe Cho Yiu and Tang, Edward Chi Ho (2019): What do we know about Housing Supply? The case of Hong Kong.

Abstract

The house price in Hong Kong is well-known to be "unaffordable." This paper relates the macroeconomy and the housing market of Hong Kong and argues that the housing supply plays a vital role in explaining the phenomenon. This paper also shows that there are some practical challenges in understanding the housing supply of Hong Kong, including the potentially complicated ownership structure of real estate development. While the discussion centers on the situation of Hong Kong, its lesson may also apply to the housing markets in other small open economies.

• Item Type: MPRA Paper
• Language: English
• Keywords: new housing supply, oligopolistic market structure, ownership structure of real estate development, real estate developers
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R30 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

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