30 Sep Hong Kong needs to ‘drastically’ increase land supply: FS
Hong Kong needs to ‘drastically’ increase land supply: FS
The housing issue exposes two major problems in the city – income and asset disparity.
The land and housing supply in Hong Kong must be increased, Financial Secretary Paul Chan said, in order to eliminate subdivided housing in the city.
Aside from increasing short and medium-term supply, Chan said in his blog that methods, such as reclamation projects, should be conducted to “drastically increase” long-term supply and build more land banks.
“’Solving subdivided housing’ is already a clear goal; at the same time, we must try our best to solve the problems of expensive housing, difficult housing, and small housing,” he also said.
Chan noted the land and housing dilemma in Hong Kong exposes two major contradictions: the income disparity and the asset disparity, both between the rich and the poor.
The shortage in the supply of properties has led to higher rents. It also made it difficult for middle-class wage earners to buy their own properties.
“If we can provide reasonable and affordable living space so that the public can reduce the cost of living, or can buy a home, this aspect can solve the problem of high rent and fine living of subdivided housing tenants,” he said.
“On the other hand, significant savings will be achieved. The rental expenses for the public can actually improve the quality of life and gradually accumulate assets.”
Land supply to exceed demand: FS
Financial Secretary Paul Chan today said the potential land supply for 2024-25 is expected to provide about 15,000 flats, around 14% more than the annual demand projected in the Long Term Housing Strategy.
Mr Chan made the remarks while outlining land and housing measures in the Budget this morning. He noted that the 2024-25 Land Sale Programme will cover a total of eight residential sites.
Together with railway property developments, private development and redevelopment projects, and the Urban Renewal Authority’s projects, the potential land supply for the year is expected to exceed the annual demand of 13,200 units projected in the housing strategy, reaching 15,000 units.
In addition, two commercial sites and one industrial site will be put up for sale, providing about 120,000 sq m of commercial floor area and 540,000 sq m of industrial floor area respectively.
Housing supply
Mr Chan said the Government has identified sufficient land to meet the supply target of 308,000 public housing units over the next ten years, adding that the Cash Allowance Trial Scheme will be extended until June 2025 to help grassroots families waiting for public rental housing.
On private housing, he explained that the completion of private residential units will average over 19,000 units annually in the following five years, representing an increase of about 15% over the annual average of the past five years, with the potential supply of first hand units for the next three to four years standing at around 109,000 units.
Transport infrastructure
The Financial Secretary noted that the railway and major road projects set out in the Major Transport Infrastructure Development Blueprint are being taken forward and will bolster connectivity between districts and unleash their development potential.
The Government concurrently plans to put in place smart and green mass transit systems in East Kowloon, Kai Tak and Hung Shui Kiu/Ha Tsuen, and will invite suppliers and operators to submit expressions of interest this year.
Furthermore, to raise productivity in the construction industry, a cross-departmental steering committee under the Development Bureau will formulate measures to enhance the application of Modular Integrated Construction (MiC), and the Government will examine the feasibility of investing in the MiC supply chain.
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