Thesis Draft Proposal: Study of Residential Price in Hong Kong
2. Brief introduction/background of studies
Housing is one of the hottest issues in the world. This is because housing is the fundamental necessity of every citizen in any country; housing would also probably be one of the most arguable topics across different centuries. This is because it always involves different kinds of interest in the society. Hong Kong, a tiny place in China, encounters housing problems without exceptions. Unfortunately, this soaring problem hits Hong Kong seriously that gets on the nerves of different walks of life. Therefore, I would like to study this topic before it gets on my nerve.
Looking back to the history of housing in Hong Kong, our …show more content…
- To describe the characteristics of Hong Kong private housing market
- To describe the development of Hong Kong private housing market
- To identify the factors affecting the Hong Kong private housing price
- To build a model relating the identified factors and Hong Kong private housing price by using regression approach/ To build a forecasting model
- To test the validity of the model and to interpret the result
4. Brief literature review
There are many studies working on the housing market in Hong Kong. One of which was done by Ho, C.W. (1990). He observed that there are at least two factors leading to the up surging housing price in Hong Kong. First, the land supply in Hong Kong is very limited due to its island nature. Second, a great increase in capital flow from mainland china. Third, there are no capital gains tax in the past.
Another study done by Raymond Y.C. Tse also showed that investment is another factor leading to high housing price. His study showed that the property yields in Hong Kong were high enough to attract investors to invest. This may lead to speculations which further push the housing price to a higher level.
Some researchers have explained the active housing markets with simple answer- developers are welcome to take part in the real estate market in Hong Kong. Developing a land is relatively simpler than other areas such as North America, where capital and professionalism