L.S. Ho and G. W.-C. Wong
Contemporary Economic Policy, vol.24, 2006, p.262-273
Authors argue that the privatization of public housing played a significant role in triggering the 1998 recession in Hong Kong. Firstly, the very attractive prices offered by the Housing Authority for sitting tenants to buy their homes at discounts of up to 88% on the market price made it unattractive for them to buy other kinds of property. This caused house prices to crash. The decline in the value of houses led to a shrinkage in domestic consumption and investment and to a rise in unemployment.