Property Prices and Speculative Bubbles : Evidence From Hong Kong SAR

Author/Editor:

Christoph Duenwald

Publication Date:

January 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the determinants of residential property prices in Hong Kong SAR during 1980–98. It uses time-series analysis techniques to characterize price developments, establish empirical regularities, and provide measures of the deviations of actual price changes from “trend.” The analysis suggests that at the peak of the boom, in mid-1997, the level of property prices may have been 40–45 percent above levels suggested by developments in “fundamentals.” The analysis highlights the role of demand-side factors, and the data are not inconsistent with the notion that the property market may be subject to speculative bubbles.

Series:

Working Paper No. 00/2

Subject:

English

Publication Date:

January 1, 2000

ISBN/ISSN:

9781451841756/1018-5941

Stock No:

WPIEA0022000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

29

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