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Hong Kong is one of the most dynamic property markets in the world, and now provides the economic gateway to China. Using style analysis, the level of direct property in Hong Kong property company performance is shown to be approximately 15 per cent over 1984‐2000, with the level of direct property increasing to approximately 25 per cent in recent years. The level of direct property in Hong Kong property company performance is significantly below that seen for the USA, Europe and Australia. This highlights a number of key strategic property investment issues over 1984‐2000, relating to the level of direct property in Hong Kong property company performance. Also assesses the level of direct property at the individual property company level, as well as the property company sector level, further emphasising the strategic role of Hong Kong property companies in an investment portfolio. This research complements the previous research by Brown and Chau on excess returns in the Hong Kong property market, as well as highlighting the issues and role of both direct and indirect property for inclusion in diversified investment portfolios; these being key areas of Gerald Brown's extensive property research agenda.

Urban land and housing market is a political arena where the government is usually expected by the general public to intervene for the benefit of the society. With the government owning all land in Hong Kong, public land auctions have been an important channel for developers to acquire land for property development, apart from private-led urban regeneration. For a long time before 1997, the government of Hong Kong supplied land to the market via a supply-oriented model which was entirely dependent on the willingness of government to sell. The situation changed in 1997 when the administration found that they were being unresponsive, and switched to a demand-oriented supply model, the Application List System. In any case, there is a general expectation in the society that government urban land policy in supplying land should have a major bearing on the housing market, especially in making housing more affordable by the general working class. By applying a Granger causality framework, we find this expectation unrealistic as there is no evidence supporting the claim that changing land supply via government land sale programme would impact on housing prices. However, it is found that housing prices do Granger-cause land supply under the Application List System which implies that private sector is more responsive to market changes than the government, which is ironic as the government decided to abandon this model and revert back to the old supply-oriented model in 2013. We conclude that the political economy of the urban land market has made the land supply model too subjective and dependent on government agenda, which is not a health development towards a more optimal urban land policy.