Investigating the Influence of Associated Risks, Rewards, and External Intervention on Homeownership in Hong Kong, China

Abstract

Homeownership approach differs across the global south and north. Several factors influence the decision to own a house, and the impact of homeownership is different in developed or developing countries of the world. The stakeholders, including housing experts and policymakers, struggle with balancing the aspiration to own a house and the decision to buy into the pressured market considering the diverse factors associated with such choices. This study provides a comprehensive empirical investigation of the factors influencing homeownership in Hong Kong from three broad categories of associated risks, rewards, and external intervention factors of homeownership to guide ownership decision and policy formulations. Based on literature review evidence, seven associated-risk, eight rewards, and seven external intervention factors were identified as the basis of the variance based-partial least square-structural equation model (V-PLS-SEM) analysis of the study. A case study methodology with quantitative method of data collection and analysis was adopted with 502 valid responses analysed using mean item score (MIS), standard deviation (SD)and V-PLS-SEM. The result shows that the observed factors have a significant positive influence at 1.000 threshold level and have substantial predictive power and influence on homeownership. The approach used in this study is useful for individuals, organisations, academicians, facilities managers, and policymakers in the process of implementing homeownership strategies. Thus, this study recommends the integration of empirical factor analysis with other strategies for homeownership decision and policy statements to guide homeownership issues in Hong Kong.