Determinants of cross-border tenure choice decision

The economic integration between Hong Kong and the Mainland stimulates cross-border relocation from the former to the latter. This paper examines the determinants of cross-border tenure choice decision using factors at macro-, neighbourhood and household levels. The macro-factors include labour market conditions and property cycles that affect both relocation and tenure choice decision. Differences in neighbourhood quality act as pull and push factors that trigger relocation. Household level factors reflect variation in taste and affordability as the household moves through the lifecycle. The characteristics of the supply side are also discussed as they affect the alternatives in the choice set that the household might choose from. Results from the logit estimation indicate that job-related factors have a negative impact on home ownership across the border while the opposite is true when households relocate for better living environment. The recent downturn of the local property market has led a cohort of households to develop a negative attitude towards home ownership that is being carried over to the Mainland.