Influential Article Review - Understanding the Fundamentals of the Hong Kong Housing Property Market

Abstract

This paper examines investments. We present insights from a highly influential paper. Here are the highlights from this paper: This study uses the intrinsic bubbles detection method to identify housing bubbles in the Hong Kong residential property market. By using sample period data from 1993 to 2019, the empirical results show evidence of intrinsic bubbles. Based on the unit root and co-integration tests, I found that there are no rational speculative bubbles in the Hong Kong residential property market. Furthermore, by using the Granger causality tests of the corresponding asymmetric VECM specification, there is no causality from lagged changes in the rental price returns to changes in the property price returns. However, there is strong evidence to show that changes in the property price index returns can Granger cause changes in the rental price index returns. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.