Good for buyers, bad for developers? Hong Kong property prices cooling amid ‘oversupply’
Government to beat target of 19,000 homes, putting pressure on market
The government is poised to beat its land supply target for the private sector to build 19,000 new homes this year by 1,300 flats, but it could put extra pressure on the property market which is already facing a downturn.
Together with another 1,100 flats to be provided by the MTR Corporation at Lohas Park, and combined with units coming from other plots offered this year, the number will hit 20,300 at the end of the 2015/16 fiscal year.
To meet its 19,000 target, it only had to add 1,360 units this quarter as 17,640 flats were already supplied in the first three quarters.
“We are pretty confident that the private housing land supply target for this year will be met,” said development minister Paul Chan Mo-po yesterday. Chan promised to continue monitoring the property market closely and act flexibly, while insisting that cooling measures now in force would remain.
