Hong Kong’s government will sell land and build public housing for 60,700 new homes in the city’s northeast area as part of its plan to help curb property prices in the world’s most-expensive housing market.
The government plans to have the units in the Fan Ling North and Kwu Tung North areas completed by the 2022 to 2023 fiscal year, Secretary for Development Paul Chan told reporters in a briefing today. It plans to raise the percentage of public housing in the areas to 60 percent of the total new supply from the original 43 percent, he said.
Home prices have more than doubled since early 2009 on an influx of mainland Chinese buyers, near record-low interest rates and a lack of new supply. Hong Kong’s Chief Executive Leung Chun-ying took over in July last year after having pledged to increase supply to help make housing more affordable for the general public.
The new homes in the two areas will house about 170,000 people, Chan said.
Leung’s government will provide land to build 75,000 public homes in the next five years, and the private sector may sell 67,000 units in the next three to four years, he said at his policy address in January. The city plans to supply 450,000 new homes over the next 10 years, the Hong Kong Economic Journal reported June 21, citing transport and housing secretary Anthony Cheung.