The impact of use of online delivery platforms on property prices in Hong Kong

Abstract

This paper studies the effect of online delivery platforms on residential property prices in Hong Kong, a market characterized by high cost and value attached to location. Though they have come to a condition of being a digital convenience revolutionizing urban lifestyle, traditional factors like proximity to transport or land scarcity continue to prevail. The research uses a mixed method approach in which surveys of residents and interviews with real estate and urban planning experts were conducted to show that reliance on the platform for housing choices is widespread and relatively new, and that there is a strong preference in housing choices by younger demographics to have delivery access. Based on the responses of interviewees, platforms have a very minimal impact on property prices, since they add desirability to underserved areas, especially, without significantly changing economic value. The analysis might encourage enthusiastic developers and planners to capitalize on the trend, however, there appears to be a gap between lifestyle benefits derived from this trend and market outcomes. The study concludes that digital convenience is supplementary to traditional drivers and provides a framework for stakeholders to strategically integrate digital convenience into their operations. Finally, it raises the need for studying long-term digitals influences over real estate dynamics.