Jump to ContentJump to Main Navigation
Hong Kong Land for Hong Kong People$
Users without a subscription are not able to see the full content.

Yue Chim Richard Wong

Print publication date: 2015

Print ISBN-13: 9789888208654

Published to Hong Kong Scholarship Online: September 2015

DOI: 10.5790/hongkong/9789888208654.001.0001

Show Summary Details
Page of

PRINTED FROM HONG KONG SCHOLARSHIP ONLINE (www.hongkong.universitypressscholarship.com). (c) Copyright Hong Kong University Press, 2022. An individual user may print out a PDF of a single chapter of a monograph in HKSO for personal use.date: 17 May 2022

Speculators, Property Agents, and the Spreading of Risk in the Presale Housing Market

Speculators, Property Agents, and the Spreading of Risk in the Presale Housing Market

(p.137) 19 Speculators, Property Agents, and the Spreading of Risk in the Presale Housing Market
Hong Kong Land for Hong Kong People

Yue Chim Richard Wong

Hong Kong University Press

Housing forward contracts for presale units have two important distinguishing features. First, residential units are necessarily heterogeneous. Second, the final users are typically homeowners or small landlords and usually not the speculators. Speculators and property agents who trade in housing forwards perform these dual functions and therefore offer an incentive for developers to sell some of their presale units to them rather than to final users. Developers are also motivated to sell some of their units to speculators and property agents because they can sell units in a single development in a number of stages. Clearly, the price one is willing to bid for a unit depends to a large extent on its expected future value. This value will change over time as more information becomes available, which will alter the likely bid. A developer could try to pick the best time to sell units but can never be completely certain when that will be. An optimal strategy would be to space out sales over time to balance risk against expected return, but there is a limit to such sales, dictated by relevant cost-benefit considerations.

Keywords:   Hong Kong, Housing, Housing policy, Public Housing, Politics, Social mobility, Population, Economics, Growth

Hong Kong Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .