International Real Estate Review

2015 ◽  
Vol 18 (3) ◽  
pp. 383-428
Author(s):  
Charles Leung ◽  
Keyword(s):  
Hong Kong ◽  
Housing Prices ◽  
Housing Price ◽  
Price Volatility ◽  
The United States ◽  
Preliminary Evidence ◽  
Housing Supply ◽  
Supply Elasticity ◽  
International Attention ◽  
Housing Supply Elasticity

Housing prices in Hong Kong have gained international attention. This study suggests that the housing supply may be insufficient. Consistent with previous studies, we confirm that merely increasing the land supply may not increase the housing supply. We also find preliminary evidence for widening income inequality, which, when combined with unavailability, can lead to unaffordability in the housing market. Given the current housing supply elasticity with respect to price, Hong Kong is not more volatile than major cities in the United States. Thus, by improving housing availability and thereby increasing housing supply elasticity, this could effectively decrease housing price volatility.

scholarly journals Housing Supply in the Presence of Informality

2021 ◽  
Author(s):  
Ricardo Guedes ◽  
Felipe Iachan ◽  
Marcelo Sant'Anna
Keyword(s):  
Metropolitan Areas ◽  
Demographic Data ◽  
Housing Prices ◽  
Housing Supply ◽  
Informal Housing ◽  
Supply Elasticity ◽  
Downward Pressure ◽  
Housing Supply Elasticity ◽  
City Model ◽  
Identification Strategy

We study housing supply in markets where informal housing is common. Using a combination of census and satellite data, we estimate housing supply for more than 90 metropolitan areas in Brazil. We find that widespread informal housing increases the housing supply elasticity, partially offsetting the downward pressure of geographical constraints. Our empirical approach is guided by a monocentric city model that includes informal housing. Our identification strategy relies on the use of two novel instruments, combining demographic data and public land ownership. We use the supply elasticity estimates to forecast the response of future housing prices to natural population growth.

scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (2) ◽  
pp. 207-219
Author(s):  
Haiwei Chen ◽  
Keyword(s):  
United States ◽  
Real Estate ◽  
Housing Price ◽  
Price Volatility ◽  
The United States ◽  
Nonparametric Tests ◽  
Property Taxes ◽  
Regression Analyses ◽  
Tax Regimes ◽  
Mortgage Rates

Both parametric and nonparametric tests show that housing price volatility is lower in states that impose a real estate transfer tax on transaction values than those that impose no such tax in the United States. However, regression analyses show no difference in price volatility between the two tax regimes, after controlling for known economic and demographic factors, such as income, population growth, mortgage rates, property taxes, and jobless rates. Such a conclusion is robust because the fixed effect and the two-way clustering models are used to account for irregularities in the error structures.

scholarly journals INTERNAL AND EXTERNAL DETERMINANTS OF HOUSING PRICE BOOM IN HONG KONG

2020 ◽  
Vol 23 (4) ◽  
pp. 597-620
Author(s):  
Farhad Taghizadeh-Hesary ◽  
Naoyuki Yoshino ◽  
Aline Mortha ◽  
Alvin Chiu ◽  
Niki Naderi
Keyword(s):  
Hong Kong ◽  
Housing Prices ◽  
Mainland China ◽  
Housing Price ◽  
Capital Inflow ◽  
Macroeconomic Factors ◽  
Price Boom ◽  
Price Appreciation ◽  
Key Variables ◽  
Internal And External Factors

Hong Kong’s housing market witnessed a dramatic housing price appreciation in recent years, with the price index for private domestic housing units being three times higher than ten years ago. This trend is supported by both internal and external factors, as illustrated in this paper. By developing a theoretical model and an empirical analysis on the key variables influencing housing prices using monthly data from 1999 to 2018, we find that the main drivers of housing price appreciation are from the demand side and include income level, money supply and inflation. The main contribution of this study is the quantification of the role of Mainland China’s macroeconomic factors in housing price booms in Hong Kong. Our study shows that capital inflow from and inflation and recessions in Mainland China contribute to increasing housing prices in Hong Kong because the city’s real estate is seen as a way to preserve asset value. These findings call for the need for control of capital inflow between the two economies as well as for stricter regulations against empty houses in Hong Kong.

scholarly journals The effects of tourism on housing prices: applying a difference-in-differences methodology to the Portuguese market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
António Manuel Cunha ◽  
Júlio Lobão
Keyword(s):  
Real Estate ◽  
Housing Prices ◽  
Housing Price ◽  
Generalized Least Squares ◽  
Equation Model ◽  
Seemingly Unrelated Regression ◽  
Housing Supply ◽  
Difference In Differences ◽  
Content Type ◽  
Price Increases

Purpose This paper aims to explore the effects of a surge in tourism short-term rentals (STR) on housing prices in municipalities within Portugal’s two largest Metropolitan Statistical Areas. Design/methodology/approach This study applies the difference-in-differences (DiD) methodology by using a feasible generalized least squares (FGLS) estimator in a seemingly unrelated regression (SUR) equation model. Findings The results show that the liberalization of STR had a significant impact on housing prices in municipalities where a higher percentage of housing was transferred to tourism. This transfer led to a leftward shift in the housing supply and a consequent increase in housing prices. These price increases are much higher than those found in previous studies on the same subject. The authors also found that municipalities with more STR had low housing elasticities, which indicates that adjustments to the transfer of real estate from housing to tourism were made by increasing house prices, and not by increasing supply quantities. Practical implications The study suggests that an unforeseen consequence of allowing property owners to transfer the use of real estate from housing to other services (namely, tourism) was extreme housing price increases due to inelastic housing supply. Originality/value This is the first time that the DiD methodology has been applied in real estate markets using FGLS in a SUR equation model and the authors show that it produces more precise estimates than the baseline OLS FE. The authors also find evidence of a supply shock provoked by STR.

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