Developer sentiment, developer’s strategy and housing supply: evidence from Hong Kong

Wang, Z. ORCID: https://orcid.org/0000-0003-0374-346X, Hui, E. C.-m. and Liang, C. (2024) Developer sentiment, developer’s strategy and housing supply: evidence from Hong Kong. Regional Studies. ISSN 1360-0591 doi: 10.1080/00343404.2024.2377675

Abstract/Summary

The increasingly important role of sentiment in the housing market has complicated the challenges facing developers during boom-and-bust cycles. This study investigates how developer sentiment affects developers’ decision-making and the housing supply at the project level. As the standard evaluation usually overlooks sentiment resulting in suboptimal inferences, we develop a new theoretical model that analyses both sentiment and developers’ optimal strategies. Our findings suggest a ‘U’-shape relationship between developer sentiment and the expected waiting time to develop. Second, the optimal development density declines when developer sentiment intensifies. The Hong Kong housing market is used as a case for empirical analysis.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/118413
Identification Number/DOI	10.1080/00343404.2024.2377675
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning
Publisher	Routledge
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