The housing ladder and Hong Kong housing market's boom and bust cycle

Authors

Lok Sang HOFollow
Wai Chung, Gary WONGFollow

Document Type

Paper Series

Publication Date

2008

No.

190

Abstract

This paper presents evidence, based on the recent Hong Kong experience, for the existence of a “housing ladder effect.” An increase of housing equity at the bottom of the ladder tends to translate into a trading up activity that will both increase housing market turnover and buoy up the entire housing market. Based on a natural experiment through the introduction of a public housing privatization scheme, this papers presents evidence supporting this story using a logit model and a price-volume causality test.

Comments

CPPS Working Paper Series No.190 (Apr 08)

Recommended Citation

Ho, L. S., & Wong, W. C. G. (2008). The housing ladder and Hong Kong housing market's boom and bust cycle (CPPS Working Paper Series No.190). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/89/