Hong Kong to Raise Land Sales to Meet Home Targets, Tsang Says

The Hong Kong government will sell land this fiscal year that could yield 11 percent more private homes, as it seeks to bring down prices in the world’s most-expensive residential market.

The government will sell land for as many as 15,500 private homes for the fiscal year ending March 2015, up from the 14,000 units expected this year, Financial Secretary John Tsang said in his budget speech today.

Chief Executive Leung Chun-ying made tackling soaring property prices one of his main goals, introducing the city’s toughest curbs last February and pledging to provide more public housing. Transactions last year slowed to the lowest since 1996, according to Land Registry data.

“Before the supply-demand situation of the property market regains its balance, the government must continue with its demand-side management measures,” Tsang said.

Together with land sold by others, developers will have access to sites to build 20,000 private homes for the 2015 fiscal year, the annual target of the government, Tsang said.

To contact the reporter on this story: Hwee Ann Tan in Hong Kong at hatan@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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