European Parliament Library

Are House Prices Rising too Fast in Hong Kong SAR?

Abstract
Sharp increase in house prices in Hong Kong SAR in 2009-2010 has led to concerns of an emerging real estate bubble. According to our measure of price deviation from fundamentals, which should be taken as an early warning indicator of market exuberance, the current level of house prices in Hong Kong SAR does not seem to be significantly higher than would be justified by underlying fundamentals. Moreover, unlike advanced economies before 2007-8, deviation from fundamentals has not been persistent in Hong Kong.Going forward, low interest rate and improving growth prospects, as well as a tight supply, particularly in the mass market, means that house price growth will continue to be strong.This is the period in which vulnerability may be accumulating, and tight prudential standards and fiscal measures will be required to tame price inflation
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Salient Features of the Hong Kong Property Market; III. How We Assess Price Misalignment: An Empirical Strategy; A. How We Calculate; B. International Comparators; IV. Are Hong Kong Residential Properties Already Overvalued?; V. What are the Policy Implications?; VI. Conclusion; Appendix I: Selected property Market Related Policies in Hong Kong SAR; References; Footnotes
Language
eng
Literary Form
non fiction
Note
"December 2010."
Physical Description
1 online resource (35 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613871688

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