A note on the research theme of "the influences of the economic trends and housing policy on the Hong Kong residents' confidence on home purchase" (information from perplexity.ai) [a note related to the assignment 1 work of my Housing Studies students]
My question 1: "Please highlight 8 main ideas (e.g. definition, measurement methods, related housing issues, etc.) on the Housing Studies topic of "the residents' confidence on home purchase in the near future".
The reply: "Here are eight key ideas on the topic of "the residents' confidence on home purchase in the near future," covering concepts, measurement, factors, and policy implications.
Definition of Residents’ Confidence
Residents’ confidence in home purchase refers to the psychological and perceptual willingness of individuals or households to buy a residential property, reflecting their optimism or caution about financial feasibility, market trends, and personal circumstances.
Measurement Methods
Resident confidence is commonly measured using survey-based indices (such as the Home Purchase Sentiment Index or localized confidence surveys), which assess attitudes towards property prices, market trends, job security, interest rates, and intent to buy in the near future. Quantitative metrics often include the proportion of respondents considering it a good time to buy and composite scores from structured questionnaires.
Economic and Affordability Factors
Key economic indicators such as employment levels, income trends, price-to-income ratio, and mortgage rates are central to assessing home purchase confidence. Improved affordability (lower mortgage costs or price stabilization) generally boosts confidence; financial stress and unaffordability dampen it.
Psychological and Social Factors
Home purchase decisions are strongly influenced by psychological factors—perceived market momentum, risk perception, emotional attachment to prospective homes, fear of missing out (FOMO), and buyer sentiment shaped by news and media.
Influence of Government Policies
Government housing policies (stamp duties, mortgage regulations, housing subsidies, financial supervision) directly affect confidence by altering affordability, housing supply, and perceived market fairness. Policy reforms can boost or suppress confidence depending on market and population segment.
Housing Market Issues and Trends
Market challenges such as price volatility, supply-demand imbalances, and speculative investment trends are intimately linked to resident confidence. Rapid price increases or oversupply may cause anxiety, while price stability generally helps confidence recover.
Survey Findings and Behavioral Trends
Recent surveys show that significant proportions of residents remain interested in buying homes, but actual intention is shaped by optimism about property prices, local factors such as location and school district, and practical barriers such as high prices and rising mortgage rates.
Theoretical Frameworks and Conceptual Perspectives
Scholarly discussions highlight the importance of sociological (social norms and accessibility), social psychological (sentiment, emotion, and media influence), and rational economic (affordability and expectations) perspectives in explaining residents' home purchase confidence. These frameworks help categorize drivers and barriers for different housing market groups.
Each of these main ideas addresses essential components for academic analysis and policy understanding of home purchase confidence in housing studies."
My question 2: "Also briefly highlight 5 main ideas on this topic with each of the 2 considerations [past and outlook]: (1) influences of economic trends (e.g. unemployment rate, GDP per capita) and (2) influences of Housing Policy in the context of Hong Kong."
The reply: "Here are five main ideas each for the two considerations—(1) influences of economic trends and (2) influences of housing policy—on residents' confidence in home purchase in the context of Hong Kong, with perspectives on past trends and outlook:
1. Influences of Economic Trends
Past
Hong Kong experienced a significant decline in home prices during early 2025, reaching a 9-year low with prices down over 7% year-on-year amid macroeconomic uncertainties and U.S.-China trade tensions, impacting buyer confidence negatively.
Unemployment and slower GDP growth weighed on residents’ purchasing power and willingness to commit to home purchases due to economic uncertainty and job security concerns.
High mortgage rates and cautious bank lending policies constrained borrowing capacity, further dampening home purchase confidence despite government stimulus in housing.
Negative equity cases increased, where homeowners owed more on mortgages than property values, adding financial risk perception for buyers.
Market sentiment fluctuated with external economic shocks and local financial market volatility, causing hesitation in home buying decisions.
Outlook
The economy is showing signs of stabilizing with moderate growth forecast for late 2025, modest GDP improvement, and intermittent interest rate cuts by the U.S. Federal Reserve helping restore optimism in the housing market.
Stabilization and slight recovery in home prices, coupled with improved transaction volumes, are encouraging cautious buyer confidence, especially among small-to-mid size units below HK$5-6 million.
Falling interest rates and a positive stock market trend are expected to support more transactional activity and improve affordability, enhancing confidence outlook.
RMB appreciation and potential mainland capital inflow may provide additional demand support, influencing confidence positively.
Uncertainty remains around external risks (e.g., ongoing U.S.-China tensions), which could temper confidence unless macroeconomic trends remain stable.
2. Influences of Housing Policy
Past
The Hong Kong government introduced policies such as stamp duty reductions for home transactions below HK$4 million and relaxed purchase restrictions, aiming to improve affordability and stimulate demand.
Lowering down payment requirements was designed to make home ownership more accessible to first-time buyers, positively impacting buyer confidence initially.
However, policy effects were dampened by broader economic challenges and cautious lending practices, limiting the full confidence boost from these measures.
The government’s actions to stabilize the property market amid declining demand helped prevent steeper market collapse, indirectly supporting confidence.
Policy moves have sometimes led to concerns about market risks, especially with rising negative equity, making some buyers more cautious.
Outlook
Continued government efforts in stabilizing home prices and demand, combined with policy adaptations responding to market conditions, are expected to underpin a gradual recovery in buyer confidence.
Policies easing mortgage terms and purchase restrictions help maintain accessibility and encourage hesitant buyers to re-enter the market.
The government’s proactive approach aims to balance supply and demand, preventing excessive price volatility which boosts market predictability and buyer confidence.
Supportive housing policies complemented by economic stabilization efforts are anticipated to sustain a cautiously optimistic outlook for confidence in near-term home purchases.
Monitoring of policy impacts and homeowner equity situations remains crucial for sustaining positive sentiment and avoiding sudden confidence shocks.
These points provide a concise summary of how economic trends and housing policy have shaped and will likely continue to shape residents' confidence in the Hong Kong housing market."
My question 3: "Please suggest 4 research questions related to this topic of "the impacts of economic trends and housing policy on the Hong Kong residents' home purchase confidence" for illustration purpose."
The reply: "Here are four illustrative research questions on the topic of "the impacts of economic trends and housing policy on Hong Kong residents' home purchase confidence":
How do changes in economic indicators such as unemployment rate and GDP per capita influence the confidence of Hong Kong residents in purchasing homes in the near future?
What is the impact of recent housing policy measures (e.g., stamp duty adjustments, mortgage regulations) on the home purchase confidence of different buyer segments in Hong Kong?
How do economic trends and housing policies interact to shape the short-term outlook of home purchase confidence among first-time buyers versus property investors in Hong Kong?
To what extent do perceptions of government housing policies affect the psychological willingness of Hong Kong residents to engage in home purchases amid fluctuating economic conditions?
These research questions align with sociological, psychological, and rational-economic perspectives on buyer confidence and reflect current market and policy contexts in Hong Kong."
My question 4: "How can the topic and and research questions mention above be further enriched via the intersectionality lens?"
The reply: "The topic and research questions on the impacts of economic trends and housing policy on Hong Kong residents' home purchase confidence can be enriched through an intersectionality lens by examining how multiple social categories and power structures interact to shape differential experiences and confidence levels among diverse groups.
Ways to Enrich the Topic via Intersectionality:
Multiple Social Identities: Analyze how factors such as income, age, gender, ethnicity, family composition, and occupation intersect to influence residents’ confidence differently across social groups. For instance, younger low-income women may face distinct barriers compared to middle-aged male professionals.
Structural Inequality: Consider how historical land policies and privatization have disproportionately affected marginalized groups by restricting their access to affordable housing, compounding economic disadvantages and influencing confidence levels unevenly across social strata.
Differential Policy Impact: Explore how housing policies, like the Home Ownership Scheme (HOS) or stamp duty reforms, have varied impacts on different intersectional groups, potentially benefiting middle-income earners more than lower-income or ethnic minority populations, affecting overall market confidence perception.
Power Relations and Agency: Investigate how power dynamics in the housing market—such as dominance by private developers and government revenue reliance on land sales—interact with socio-economic positions to shape opportunities and constraints on home buying confidence across groups.
Social Cohesion and Stability: Study how disparities generated by intersectional inequalities in housing access influence broader social cohesion and collective confidence in the housing market, affecting residents’ trust in housing policies and economic prospects.
How Research Questions Can Integrate Intersectionality:
How do intersecting identities (e.g., age, income, gender) influence the impact of economic trends on the home purchase confidence of different groups in Hong Kong?
In what ways do housing policies differentially affect home purchase confidence among marginalized versus privileged social groups considering intersectional factors?
How do interactions between socio-economic status and policy exposure shape residents' psychological confidence in purchasing homes in a market dominated by private developers?
What role do intersectional social inequalities play in mediating the relationship between macroeconomic shifts and buyer confidence in Hong Kong’s housing market?
Applying an intersectionality lens enables a nuanced and equitable understanding of home purchase confidence, highlighting tailored policy responses to address complex social realities rather than a one-size-fits-all approach.
This approach helps unpack layered inequities and structural barriers inherent in Hong Kong’s housing market and provides insight into diverse resident experiences and confidence determinants."
A collection of blog notes on using chatgpt for research purpose.
