Articles:
Are the Markets for Factories and
Offices Integrated? Evidence from Hong Kong
Authors:
Charles Ka Yui Leung, Peiling Wei and Siu Kei
Wong
Start Page: 62
End Page: 94
Volume: 9
Issue Number: 1
Year: 2006
Publication: International Real Estate Review
Abstract: Due to the
relocation of manufacturing facilities from Hong Kong to Mainland China, it
is widely believed that some vacant private factories have been used as
offices in Hong Kong. Yet there is no direct and systematic evidence to
support this speculation. In fact, according to MacGregor and Schwann
(2003), industrial and commercial real estate shares some common features.
Our research attempts to investigate empirically the price and volume
relationship between industrial and commercial real estate, using both
aggregate and disaggregate data from the industrial and commercial property
markets in Hong Kong. The study was built on the observation that economic
restructuring and geographical distance will affect the substitutability
(and thus the correlation) of different types of property, and utilizes
commonly used time series techniques for analysis. Policy implications are
discussed.
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