Consumption, Housing Rents and Housing Price: A Test of a Real Estate Pricing Model Using Hong Kong Data
15 Pages Posted: 16 Aug 2003
The present study investigates whether Hong Kong's volatile real estate market is consistent with a non-linear consumption-based-asset-pricing model. It finds that the asset-pricing model is not rejected for some types of properties. However, the differentials between the returns to residential properties and risk-free rate are too large to be explained by the model.
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