Abstract
Fluctuations in housing prices not only affect the financial well-being of corporations and households, but also influence the stability of economies. One of the results derived from such fluctuations is known as price bubbles. We aim to investigate whether such housing price bubbles did exist in two different residential markets of Hong Kong. The results indicate that there are bubbles in the Hong Kong housing markets before 2003, and later within the luxury market by 2008. As to what the government could do to curb speculative activities with regard to housing, the introduction of a capital gains tax on short-term transactions of flats as well as a higher housing supply are regarded as effective means.
| Original language | English |
|---|---|
| Pages (from-to) | 781-793 |
| Number of pages | 13 |
| Journal | Construction Management and Economics |
| Volume | 29 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 1 Aug 2011 |
Keywords
- Housing price bubble
- Luxury residential market
- Mass residential market
- West specification test
ASJC Scopus subject areas
- Building and Construction
- Management Information Systems
- Industrial and Manufacturing Engineering