The often volatile behavior of the Hong Kong housing construction activity is analysed using an annual econometric model for 1975 through 1999. Theory suggests that an increase in house prices leads to a rise in the housing stock, whereas an increase in interest rates leads to a decrease in the...

This study introduces a dynamic adjustment model, relating the growth rate of the supply of office spaces to the vacancy rate and the gap between actual and expected supply growth rates. A two-equation model of stock adjustments based on adaptive expectations is used to provide empirical tests....