An evaluation of the impact of the downfall of property market on tenure choice in Hong Kong
Homeownership has been one of the important ideas provoked by the Hong Kong Government. As the scarce land supply in Hong Kong, the house price had never been in a descending trend before 1997. The Asian Financial Crisis in 1997 had hard hit the entire economy, but the obvious.crisis had happened in the housing market since the house price had been declined in nearly 50%. The implication is that people would be willing to enter into the housing market. Since the home purchase would be able to guarantee with the home owners with capital gain, heavy burden in the mortgage repayment would be a great concern to them. However, many people witnessed the drop in the house price and found astonished with the situation in the property market and lost confidence towards the wealth accumulation of home owning. The home owning activities were greatly contracted since 1997. However,- Hong Kong people still continues home purchase if they find that there is genuine needs for themselves and their family. To own home would be a rational decision by the Hong Kong people after 1997. The house price depreciation would be able to deter the investment motive in home owning but it cannot reduce the ontological needs in home owning. Home ownership would be the preferred tenure choice in Hong Kong even there is less investment value of the property.
School:The University of Hong Kong
School Location:China - Hong Kong SAR
Source Type:Master's Thesis
Keywords:housing prices china hong kong home ownership landlord and tenant attitudes
Date of Publication:01/01/2005