The price index of Tsuen King Garden is constructed based on our hedonic price model. It provides an overview of the property price of the housing estate from 1993 m1 (m: month) to 2017 m8 which is the most recent month transaction is recorded.
According to the diagram, the property price of Tsuen King Garden increases from 1993m1 to 1997m9. Then a significant drop is witnessed from from 167 in 1997m10 to 6.51 in 2003m3. After reaching the lowest point, the property price kept increasing. Apart from two significant drop in 2013m4 (79.9) and 2015m12 (46.1), the price index was generally keep increasing from the lowest point in 2003m3 till the most recent available data for 14 years. The most recent index, which is the index in 2017m8, is 197.
According to our available data, the two drop in 2013 and 2015 are due to the small number of transaction records, 5 and 6 deals are recorded respectively. The insufficient price records may lead to deviation in the result of the price index.
RVD’s price index categorized in Class A and Class B are used to compare with the price index of Tsuen King Garden. They are chosen because the size of flats in Tsuen King Garden ranges from 233 square feet to 709 square feet which is within the saleable area categorized in Class A (saleable area less than 40 m2) and Class B (saleable area of 40 m2 to 69.9 m2).
When comparing Tsuen King Garden Price Index with the RVD price index, we can notice that the price index complys with the general price trend in Hong Kong. This could be due to macroeconomics effect exist in specific time periods such as 1997, 2003 and 2008.
For example, the rise in property price was consistent between properties in Hong Kong and Tsuen King Garden due to a positive prospect before 1997. Whereas major crashdown on the financial market due to Asian Fiancal Crisis, tech stock bubble and SARS led to a downfall from 1997 to 2003. In 2008, the Asian Financial Crisis led to drastic drop in property transaction.
Overall, the property price of Tsuen King Garden has followed the general price trend in Hong Kong with reference to the macroeconomics factor as mentioned above.