Hong Kong’s government will sell eight sites that will provide 3,300 new apartments between October and December, as it seeks to raise housing supply to help curb the world’s highest home prices.
Five of the sites will include clauses requiring developers to build a minimum number of units, Secretary for Development Paul Chan told reporters at a briefing in the city today. Hong Kong put up for tender nine sites for 4,900 units in the previous quarter.
Hong Kong’s home prices have more than doubled since early 2009 on record low mortgage rates, an influx of mainland Chinese buyers and a lack of supply. A committee set up by the government to study its housing policy recommended this month the supply of land for 470,000 new homes over the next decade.
The government is “cautiously optimistic” about reaching its target to sell land for 13,600 units in the fiscal year ending March, Chan said. The government has sold 16 sites for 8,900 units from April to September, he said.
The government should study the possibility of using some of the land in Hong Kong’s country parks to build residential units, Chan said this month. In July, he announced plans to sell land and build public housing for 60,700 new homes in the city’s northeast.
Hong Kong also will sell one office site in the Kowloon East district that will add 62,000 square meters of space, Chan said today.
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