A subsidised housing price indicator for Hong Kong

Using market transaction data, we construct the first price ­indicator for subsidised properties in Hong Kong. Our findings show that both private and subsidised property prices have experienced ­tremendous growth over the past 16 years, but the growth rate of the subsidised property price at 430% is much higher than that of the private property price at 230%. We also observe that the prices of the two types of properties have shown very different trends since the COVID-19 pandemic started. Lastly, it is found that the trend of subsidised property prices comes under the additional influence of specific policies aimed at this section of the housing market. These findings indicate the importance of having a specific price index to distinguish between the private and the subsidised property market for studying how housing policies and the ­economic environment will affect the latter in Hong Kong.