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Patterns of Sub-Market Lead and Lag in Hong Kong Housing Prices

Author/s: Raymond Y. C. Tse, Dominique Fischer

Date Published: 1/01/2001

Published in: Volume 7 - 2001 Issue 3 (pages 207 - 217)

Abstract

This study analyses estate-type housing prices in Hong Kong by investigating the lead-lag relationships between prices of small/medium and large estate-type residential units in urban areas and the New Territories. The results of this study suggest that house prices of small/medium units tend to lead prices of large units in urban areas, and house prices of large units in urban areas tend to lead prices of small/medium units in New Territories. There is evidence of a feedback effect between prices of small/medium and large units in urban areas, and between prices of large units in the urban and the New Territories.

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Keywords

Causality - Hong Kong - House Prices - Unit Root Test

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