Cheyenne Hollis | Jan 18, 2013 | Comments 0
The Hong Kong government has targeted new sources of land to help increase supply and ease demand.
As Hong Kong tries to meet imminent land demand for housing developments, the country's chief executive Leung Chun-ying proposed a five-year housing development plan to ensure the provision of land supply with an ultimate goal to develop a more stable housing market, according to a Colliers International press release.
These short-to-medium term measures would potentially provide 128,700 units but no exact timeline is provided for housing constructions and completions, the press release continued.
An adequate land supply could moderate the pace of price growth and lower the risks of further tightening measures. It is not easy to stick to its annual private housing supply target, as the land sale system and the pace of projects to be launched for sale are still predominantly underpinned by developers. A more stable environment will facilitate developer's sales momentum in the near term, Colliers International said.
The Hong Kong government has identified six areas as possible land sources: North East New Territories, Hung Shui Kiu New Development Area, New Territories North, agricultural land in North District and Yuen Long, Lantau Island and Victoria Harbour.
According to Colliers International, the Hong Kong government has rolled out a series of demand-side tightening measures and the market will continue to be dominated by end-user demand with the government's cooling measures still in place. Pent-up demand from local buyers will continue to support the residential market, prompting more developers to accelerate the launch of new projects for sale.
While global liquidity remains abundant, ample supply-side measures will be effective in moderating the pace of price growth momentum. Meanwhile, preferential mortgage rates will support affordability. Generally speaking property prices will remain relatively resilient in the short-to-medium term given that no further tightening policies are imposed and no immediate easing on the current tight supply situation, Colliers International concluded.
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Filed Under: Country News • Hong Kong • News
Source: http://www.news.thethailandlinks.com/2013/01/21/hong-kong-makes-another-attempt-to-stabilise-housing-market/
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