Abstract
This study investigates the effects of government policy in the price determination process of retail property in Hong Kong. In the year of 2003, Hong Kong government launched a new policy named Individual Visit Scheme (IVS) under which the mainland travellers are allowed to visit Hong Kong on an individual basis. The aim of the policy is to boom the economy in Hong Kong and Macau that was severely affected by the SARS event. In this study, IVS policy is introduced for the first time as a demand driver in the price determination equation. It is found that the expensive locations of retail property react significantly stronger to the policy impact than cheap locations utilizing the empirical data in Hong Kong retail property market. However, with the passage of time, this impact on property price declines faster at the costly locations. More than 30 years data of retail property market in Hong Kong is obtained and analysed in the study. Information asymmetry theory is employed to explain the different responding behavior to external shocks in expensive and cheap locations in the price determination process of Hong Kong retail property market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
