Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/79266
PIRA download icon_1.1View/Download Full Text
DC FieldValueLanguage
dc.contributorDepartment of Building and Real Estate-
dc.creatorMa, SYT-
dc.creatorChan, EHW-
dc.creatorChoy, LHT-
dc.date.accessioned2018-11-05T01:45:14Z-
dc.date.available2018-11-05T01:45:14Z-
dc.identifier.issn0197-3975en_US
dc.identifier.urihttp://hdl.handle.net/10397/79266-
dc.language.isoenen_US
dc.publisherPergamon Pressen_US
dc.rights© 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/BY/4.0/).en_US
dc.rightsThe following publication Ma, S. Y., Chan, E. H., & Choy, L. H. (2018). Evolving institutions to tackle asymmetrical information problems in the housing market: A case study on ‘shrinkage’of flat sizes in Hong Kong. Habitat International, 75, 154-160 is available at https://dx.doi.org/10.1016/j.habitatint.2018.03.009en_US
dc.titleEvolving institutions to tackle asymmetrical information problems in the housing market : a case study on 'shrinkage' of flat sizes in Hong Kongen_US
dc.typeJournal/Magazine Articleen_US
dc.identifier.spage154en_US
dc.identifier.epage160en_US
dc.identifier.volume75en_US
dc.identifier.doi10.1016/j.habitatint.2018.03.009en_US
dcterms.abstractThe phenomenon of floor area 'shrinkage' of newly completed units has long been a hot debate issue in Hong Kong's housing market. Prior to the enactment of the Residential Properties (First-hand Sales) Ordinance in April 2013, news reports had revealed that the actual useable areas of some presales housing units only accounted for 50% of the gross floor areas proclaimed in the sales brochures. Notwithstanding the alarming situation, 'shrinkage' of flat size is, in fact, a lawful act in Hong Kong. Akerlof (1970) suggests that under information asymmetry, lemons tend to crowd out non-lemons. This study attempts to investigate whether an adverse selection process is taking place in Hong Kong's housing market with reference to the shrinkage phenomenon. To measure area shrinkage, 13 private mass housing developments located on the Hong Kong Island were chosen, and a total number of 16,946 flats, were involved. This paper shows that the market is full of lemons due to the delay in responses of the law governing the sales of first-hand properties. We found that the carpet areas of the selected housing developments had fallen short of between 23% and 49% of the proclaimed gross floor area, as stated in the sales brochures. Analyzing a total number of 55,227 transactions between 1991 and 2013 of the subject premises, it shows that the turnover rates of units with the highest shrinkage ratios are about 45% more than those with the smallest shrinkage ratios. ANOVA tests have been carried out and illustrated that there are significant variations between each tenth percentile of the flats in accordance to the flat shrinkage ratios. This paper concludes with a discussion of the evolution of institutions in Hong Kong's housing market to tackle the lemon problems. Attention has been placed on the effects of mandatory, voluntary and third party information disclosure. The lessons learnt in Hong Kong will shed light on policies and legislations for the fast expanding housing markets in developing countries, especially those densely populated Asian cities undergoing rapid urbanization.-
dcterms.accessRightsopen accessen_US
dcterms.bibliographicCitationHabitat international, May 2018, v. 75, p. 154-160-
dcterms.isPartOfHabitat international-
dcterms.issued2018-
dc.identifier.isiWOS:000435751000017-
dc.identifier.scopus2-s2.0-85046143489-
dc.identifier.eissn1873-5428en_US
dc.identifier.rosgroupid2017002935-
dc.description.ros2017-2018 > Academic research: refereed > Publication in refereed journal-
dc.description.validate201810 bcrcen_US
dc.description.oaVersion of Recorden_US
dc.identifier.FolderNumberOA_IR/PIRAen_US
dc.description.pubStatusPublisheden_US
Appears in Collections:Journal/Magazine Article
Files in This Item:
File Description SizeFormat 
Ma_Evolving_Institutions_Housing.pdf572.45 kBAdobe PDFView/Open
Open Access Information
Status open access
File Version Version of Record
Access
View full-text via PolyU eLinks SFX Query
Show simple item record

Page views

87
Citations as of Jun 26, 2022

Downloads

82
Citations as of Jun 26, 2022

SCOPUSTM   
Citations

4
Citations as of Jun 30, 2022

WEB OF SCIENCETM
Citations

3
Last Week
0
Last month
Citations as of Jun 30, 2022

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.