Bottlenecks in Land Supply: Government or Developers to Blame? Harvard Case Solution & Analysis

Bottlenecks in Land Supply: Government or Developers to Blame? Case Solution

All property is released at times when supply is less and is owned by the government. But the policy of the government isn't the only variable affecting the supply of land in Hong Kong.

When the land is purchased by developers from the authorities, then they are notrequired to construct promptly; instead, they frequently purchase new property to augment their property banks. A few of developers that are big, hence, have the power to affect costs, property supply and, consequently. The result is a deficit of high costs, properties, and an average unit size that's smaller than that of other nations.

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