Hidden Bibliographic Details
| Other authors / contributors: | Hua, Changchun, author.
International Monetary Fund. Asia and Pacific Department, issuing body.
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| ISBN: | 1283569388
9781283569385
9781463930455
1463930453
9781463925949
1463925948
1463963254
9781463963255
9786613881830
661388183X
1463935048
9781463935047
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| Notes: | At head of title: Asia and Pacific Department.
Title from PDF title page (IMF Web site, viewed December 16, 2011).
"November 2011."
Includes bibliographical references.
English.
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| Summary: | This paper uses an econometric model of residential property prices in Hong Kong SAR to assess the effectiveness of alternative policies in slowing the increase in property prices. The rapid rise in property prices is well explained by macroeconomic fundamentals; real GDP per capital, real domestic credit, construction costs, land supply, and the real interest rate. Policy can influence the property market though land supply and prudential and tax policy, with the latter policies taking the form of a stamp duty on property transactions and a tighter loan-to-value ratio (LTV) on lending. Land supply is the most effective policy instrument for restraining property price increases but it operates with a significant lag. The LTV and stamp duty dampen speculative activity that drives up property prices. While these policies can slow the increase in the short run, they should be guided by their long run objectives of financial stability and counteracting speculation.
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| Other form: | Print version: Craig, R. Sean. Determinants of Property Prices in Hong Kong SAR: Implications for Policy. Washington : International Monetary Fund, ©2011 9781463925949
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