Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market
This study uses time series regression models and dynamic panel models of five-class housing to investigate the dynamics of the housing price-vacancy relationship in Hong Kong, offering insights distinct from previous cross-sectional analyses that take new housing completions as a supply proxy, with...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2024-07-01
|
| Series: | International Journal of Financial Studies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7072/12/3/74 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850260782038646784 |
|---|---|
| author | Chung Yim Yiu Thomas Murray |
| author_facet | Chung Yim Yiu Thomas Murray |
| author_sort | Chung Yim Yiu |
| collection | DOAJ |
| description | This study uses time series regression models and dynamic panel models of five-class housing to investigate the dynamics of the housing price-vacancy relationship in Hong Kong, offering insights distinct from previous cross-sectional analyses that take new housing completions as a supply proxy, without considering vacant homes as a source of housing supply. Two major contributions emerge: first, the results support the hypothesis that housing vacancies exert a negative impact on housing prices, holding other factors constant. Second, new builds supply is found to have a positive effect on housing prices, which is in line with many previous studies, but it contradicts the prediction. The results challenge the use of land supply or new housing completions as the proxy of housing supply and put forward a novel suggestion of including vacant homes in the housing price analysis. Advanced approaches to collecting housing vacancy data are also discussed. These findings have significant implications for policymakers, urban planners, and real estate investors, providing valuable insights for crafting targeted interventions and informing investment decisions. This is one of the first time series and dynamic panel analyses of housing vacancy’s effect on prices. |
| format | Article |
| id | doaj-art-7d92dbf707bb4a06b0d27fa4d4c5bb39 |
| institution | OA Journals |
| issn | 2227-7072 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-7d92dbf707bb4a06b0d27fa4d4c5bb392025-08-20T01:55:33ZengMDPI AGInternational Journal of Financial Studies2227-70722024-07-011237410.3390/ijfs12030074Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing MarketChung Yim Yiu0Thomas Murray1Department of Property, The University of Auckland Business School, Auckland 1010, New ZealandDepartment of Property, The University of Auckland Business School, Auckland 1010, New ZealandThis study uses time series regression models and dynamic panel models of five-class housing to investigate the dynamics of the housing price-vacancy relationship in Hong Kong, offering insights distinct from previous cross-sectional analyses that take new housing completions as a supply proxy, without considering vacant homes as a source of housing supply. Two major contributions emerge: first, the results support the hypothesis that housing vacancies exert a negative impact on housing prices, holding other factors constant. Second, new builds supply is found to have a positive effect on housing prices, which is in line with many previous studies, but it contradicts the prediction. The results challenge the use of land supply or new housing completions as the proxy of housing supply and put forward a novel suggestion of including vacant homes in the housing price analysis. Advanced approaches to collecting housing vacancy data are also discussed. These findings have significant implications for policymakers, urban planners, and real estate investors, providing valuable insights for crafting targeted interventions and informing investment decisions. This is one of the first time series and dynamic panel analyses of housing vacancy’s effect on prices.https://www.mdpi.com/2227-7072/12/3/74determinants of housing priceshousing supplynew buildsvacant homesHong Kong |
| spellingShingle | Chung Yim Yiu Thomas Murray Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market International Journal of Financial Studies determinants of housing prices housing supply new builds vacant homes Hong Kong |
| title | Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market |
| title_full | Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market |
| title_fullStr | Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market |
| title_full_unstemmed | Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market |
| title_short | Housing Price-Vacancy Dynamics—An Empirical Study of the Hong Kong Housing Market |
| title_sort | housing price vacancy dynamics an empirical study of the hong kong housing market |
| topic | determinants of housing prices housing supply new builds vacant homes Hong Kong |
| url | https://www.mdpi.com/2227-7072/12/3/74 |
| work_keys_str_mv | AT chungyimyiu housingpricevacancydynamicsanempiricalstudyofthehongkonghousingmarket AT thomasmurray housingpricevacancydynamicsanempiricalstudyofthehongkonghousingmarket |