Transaction costs of collective action in Hong Kong high rise real estate

Abstract

Hong Kong is a wealthy part of China, home to some of the tallest buildings, on some of the most expensive real estate in the world. Yet the living and working conditions of its residents are a cause for concern following a spate of fires and falling debris from poorly maintained blocks of residential and commercial flats, which have resulted in multiple fatalities. The Hong Kong Special Administrative Region (HKSAR) Government has set up a number of initiatives to examine fire and building repairs, after the result of its own survey of 27,000 private buildings found the majority to be unsafe with respect to fire safety. Looks at the role of government in reducing the social cost of the real estate management system. Based on a theory of collective action between flat owners, using a transaction cost approach, identifies the formal laws and informal social culture in the management system of high rise property. Develops a framework to show how government intervention would alter the high transaction costs of collective action and reduce social costs.

Citation

Walters, M. (2002), "Transaction costs of collective action in Hong Kong high rise real estate", International Journal of Social Economics, Vol. 29 No. 4, pp. 299-314. https://doi.org/10.1108/03068290210419861