Hong Kong to boost housing supply to lower prices

Chief Executive, Leung Chun-ying has announced that Hong Kong has decided to boost the housing supply in response to the demand from the public. The government has taken this action instead of lifting property curbs as property prices are still too high. Over the past three years, Hong Kong has tightened its mortgages requirements and increased stamp duties as well as a tax on non-residential buyers after property prices soared. Hong Kong is now the most expensive city in the world to own property after prices peaked in September, up 160% from December 2008. The plan is to add approximately 97,100 public housing units over the next five years. In addition to this, private developers might offer 87,000 new units in the next three to four years. 

Hong Kong will boost housing supply to cater to the housing needs of the public, Chief Executive Leung Chun-ying, said in his annual policy address on Wednesday.

He said the government will not relax demand-side management measures or reduce land supply. "The current property price and rental levels are much higher than people can afford," Leung said.

The authorities will add about 97,100 public housing units over the next five years.

Leung also unveiled initiatives to underpin innovation and sector. The government allocated HK$2 billion to the Innovation and Technology Bureau.

Further, he said Hong Kong will pursue free-trade agreements, investment promotion and protection agreements, avoidance of double-taxation agreements with major trading partners along the Belt and Road Initiative.

In order to deepen engagement within the country, six additional liaison offices will be established on the Mainland.

About HK$200 million was allocated for Cyberport to invest in information and communication technology start-ups.

Over HK$100 million will be provided a year in support of collaborative research projects by Hong Kong and Mainland institutions, Leung said.

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