In this research paper, the discussion has been done on the property prices in Hong Kong in the year 2016. Different regression models have been used for the purpose of the analysis and the results have been obtained. These results have pointed out that in the year 2016, the prices of the properties in Hong Kong will continue to decline by higher amounts. Also there is an analysis of different factors which may be identified for the change in the property prices in the year 2016. A number of factors which may lead to an impact in the property prices have been discussed in the research. Thus, it is evident that there will be a significant decrease in the property prices on the basis of the research.
These price indices may be pertaining to different sizes or different composite classes compiled by the Rating and the Valuation Department. The first class is the class A which consists of area less than 40 m2, Class B which is between 40 to 69.9 m2, Class C which has a dimension between 70 to 99.9 m2, Class D between 100 to 159.9 m2 and Class E which has a dimension above 160 m2.
The Time series based RPI have been observing a consistent fall since August 1997 after the Financial Crises which occurred in Asia. They also blotted out after the 2003 SARS disease. After this, there was a remarkable reboot in the same. From these growth rates, it can be indicated that the smaller is the value of the unit size, faster will be the value of RPI. From the growth rate, it can also be analyzed that the largest positive growth rate has been achieved by HK_RPI in comparison to KWN_RPI, NT_RPI, etc. before the global financial crises of 2008 (Lau et al,2016).
Thus, the prices are much more volatile in the year 2016. There will be a great decrease in the prices of the land. Thus, the prices are much more volatile in the year 2016. Property prices in Hong Kong may increase in the foreclosed properties. The construction of new homes is there in large numbers, there may not be many chances of crash in the housing markets. The property prices may continue to fall for the coming two years. This does not means that the property prices in Hong Kong are less. They are still much higher in comparison to other nations. The government has to ensure that there is an increase in the supply of the land for the purpose of construction. This is important so as to ensure that the people need not to rush in the different housing market because of the expected observation of the drop of the prices in the year 2016. It is expected that by the end of the year 2016, there will be a fall of around 19 % by the end of 2016.