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Regulatory red tape is holding back housing developmentegulatory red tape is holding back housing development

(Figure 15) Findings from Edward Glaeser’s paper

“ Suppliers are prevented from building additional houses to respond
„
to high housing prices.
“ The major causes are regulatory requirements, such as land use
„
controls and zoning procedures.
‚
‘Why Have Housing Prices Gone Up? “ Regulatory tax imposed on the whole society, sustains high housing
„
Edward L. Glaeser, Joseph Gyourko, Raven Saks prices in the US.

(Figure 16) The possible case of regulatory tax in Hong Kong’s housing market

House Price Regulatory Tax Construction Cost Land Cost Developer Profit

Time cost (e.g. Prolonged and repeated sessions of public engagements)
Monetary cost (e.g. Substantial land premium on lease modification)
Implicit cost (e.g. Development density being cut down)
Sources: Edward L. Glaeser, Joseph Gyourko, and Raven Saks

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