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Property, Credit and Business Cycles in Hong Kong

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Book cover Law, Economics and Finance of the Real Estate Market

Part of the book series: SpringerBriefs in Economics ((BRIEFSECONOMICS))

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Abstract

Hong Kong is a tiny area, but it houses over 7 million people. The scarce land resources and the relatively high demand for housing together push up the prices of residential units in Hong Kong. For many years, the money spent on housing represented a relatively high proportion of annual household expenditures. The upswing or the decline in residential prices affects many of us. Because the economic environment in Hong Kong affects people’s purchasing power and the willingness to spend on housing, this chapter firstly reviews the housing market, credit cycles and the macroeconomic situation in Hong Kong, followed by a Hodrick-Prescott Filter analysis of the business and residential pricing cycles in Hong Kong. Lastly, a Pearson’s correlation analysis is used to display the relationship between the prices for several types of housing and economic cycles. The results show that the business cycles have a closer relationship with the larger size units than with the smaller size units. Secondly, there is a closer relationship between the housing cycles for class A to C units (smaller size units) than for class D and E units (larger size units).

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Acknowledgments

This chapter is a revised version of a paper Li, Rita Yi Man (2012) Hodrick-Prescott Filter Analysis on Residential Market and Macro Economy in Hong Kong, 7th Annual Conference of The Asian Studies Association of Hong Kong, 2nd–3rd March 2012.

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  1. Department of Economics and Finance, Hong Kong Shue Yan University, Hong Kong, Hong Kong SAR

    Rita Yi Man Li

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  1. Rita Yi Man Li
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Correspondence to Rita Yi Man Li .

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Li, R.Y.M. (2014). Property, Credit and Business Cycles in Hong Kong. In: Law, Economics and Finance of the Real Estate Market. SpringerBriefs in Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-54245-9_5

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  • DOI: https://doi.org/10.1007/978-3-642-54245-9_5

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-54244-2

  • Online ISBN: 978-3-642-54245-9

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