Speculative bubbles in mass and luxury properties: An investigation of the Hong Kong residential market

Eddie Chi Man Hu, Ivan Ng, Otto Muk Fai Lau

Research output: Journal article publicationJournal articleAcademic researchpeer-review

18 Citations (Scopus)

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 languageEnglish
Pages (from-to)781-793
Number of pages13
JournalConstruction Management and Economics
Volume29
Issue number8
DOIs
Publication statusPublished - 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

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