Abstract
This paper is the pioneer research considering impacts of new residential stamp duty on TOM. This paper covers space and time information of property transaction via spatial–temporal model, which overcomes the deficits of previous studies by only capturing temporal information. A spatial model selection scheme is adopted in this paper which largely reduces the subjective model selection bias. The results of this paper enable to test and support the important housing theory: when the new residential stamp duty is executed, buyers’ options are limited then TOM is reduced. The reduced TOM implied that buyers intend to suffer high transaction tax of the property on the condition that new residential stamp duty is enforced. They believe that performance of property asset still outperforms the other investment vehicles in Hong Kong. The results of this paper provide valuable information on policy making.
Original language | English |
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Pages (from-to) | 1117-1130 |
Number of pages | 14 |
Journal | Physica A: Statistical Mechanics and its Applications |
Volume | 503 |
DOIs | |
Publication status | Published - 1 Aug 2018 |
Keywords
- Housing market
- New residential stamp duty
- Spatial–temporal model
- Time on the market (TOM)
ASJC Scopus subject areas
- Statistics and Probability
- Condensed Matter Physics