Identifying critical enablers for homeownership in Hong Kong

Abstract

Purpose

The purpose of this paper is to present a comprehensive assessment of the influential factors that must be considered in an effort to enhance homeownership.

Design/methodology/approach

A list of 14 factors identified through the literature were assessed through a questionnaire survey with 502 useful responses. The data collected were analysed using mean item score (MIS), exploratory factor analysis (EFA) and structural equation modelling (SEM).

Findings

MIS analysis revealed “prioritizing lending towards first-time buyers”, “reforming planning process to allow building of more homes” and “introducing subsidies for all first-time buyers” as the most influential factors affecting homeownership. Using EFA, 3 key factors were generated from the 14 factors: subsidies and policy reforms; fiscal measures; and monetary measures. The SEM results show that all three factors have a significant positive effect on homeownership at different levels.

Originality/value

This paper empirically examines the enabling factors for homeownership in Hong Kong, revealing a clear effect of various group factors on homeownership. The paper proposes practical and policy recommendations to improve homeownership rate.

Citation

Jayantha, W.M. and Oladinrin, O.T. (2019), "Identifying critical enablers for homeownership in Hong Kong", International Journal of Housing Markets and Analysis, Vol. 13 No. 2, pp. 185-206. https://doi.org/10.1108/IJHMA-03-2019-0031