Property prices, housing policies for collateral and resale constraints

Chi Man Hui, Jiawei Zhong, Kahung Yu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)

Abstract

The question of whether significant impacts of Loan-to-value (LTV) ratio and Special Stamp Duty (SSD) on residential property market prices exist has been hotly debated. This study aims to investigate the long-term and short-term impacts of LTV ratio and SSD on property prices in Hong Kong. In the study period, the interest rate is low, and the growth rate of housing mortgage is slower than the growth rate of market prices. The findings indicate that changes in LTV ratio cannot change the potential purchasers’ willingness to purchase housing flats over the past ten years. SSD, on the other hand, only have a more prominent long-term impact on larger properties (more than 70 m2) by directly reducing the transaction volumes, compared with that on smaller (less than 70 m2) ones.
Original languageEnglish
Pages (from-to)115-128
Number of pages14
JournalInternational Journal of Strategic Property Management
Volume21
Issue number2
DOIs
Publication statusPublished - 3 Apr 2017

Keywords

  • Error correction model
  • Loan-to-value ratio
  • Residential property prices
  • Special Stamp Duty

ASJC Scopus subject areas

  • Strategy and Management

Cite this