IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v59y2025i1p2377675.html

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

Author

Listed:
  • Ziyou Wang
  • Eddie Chi-man Hui
  • Cong Liang

Abstract

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.

Suggested Citation

  • Ziyou Wang & Eddie Chi-man Hui & Cong Liang, 2025. "Developer sentiment, developer’s strategy and housing supply: evidence from Hong Kong," Regional Studies, Taylor & Francis Journals, vol. 59(1), pages 2377675-237, December.
    • Handle: RePEc:taf:regstd:v:59:y:2025:i:1:p:2377675
    DOI: 10.1080/00343404.2024.2377675
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2024.2377675
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2024.2377675?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:59:y:2025:i:1:p:2377675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.