TITLE:
An Empirical Analysis of the Impact of Real Estate Tax System on Housing Price in Hong Kong
AUTHORS:
Kedi Mo
KEYWORDS:
Hong Kong, Real Estate Tax, Housing Price
JOURNAL NAME:
Modern Economy,
Vol.10 No.1,
January
10,
2019
ABSTRACT: This paper selects Hong Kong from 1999 to 2015 as
the sample period, sets the variable to the private residential retail price
index HP and the real estate related tax revenue HT, selects the multi-log
logistic regression model method, empirically analyzes the profits tax, stamp
duty, the impact of general rates and property taxes on the retail price index
of private housing in Hong Kong. The results show that the real estate tax on
the retention link has only a limited impact on the price of private housing. The promotion of property
tax is more obvious, and the general difference is less affected. The real estate tax on the
transaction link has a significant impact on housing prices. Profits tax has a
significant positive effect, and stamp duty also has a driving effect, but the
effect is weak. Increasing the tax on the transaction link will stimulate the
housing price to rise further. According
to the empirical results, this paper believes that the Hong Kong government
should further clarify the role of real
estate tax, give full play to the government’s functions in the real estate
market, simplify the real estate tax system, and improve the property tax
package, in order to play a role in the real estate tax to suppress housing
prices.