New | Hong Kong to add 96,000 homes over three years, but will they halt runaway housing prices?
The supply of new private housing will rise by 2 per cent to a record 96,000 units over the next three years, according to government data, but the new properties will do little to dent the record prices of housing in the city.
A record 96,000 units will be added to Hong Kong’s supply of private housing over the next three to four years, according to the Transport & Housing Bureau’s latest quarterly data, an increase of 2 per cent from the previous projection.
Hong Kong’s home price index, which tracks prices in the secondary market, rose for the 12th consecutive month in March, advancing 2.2 per cent to a record 319.8, according to data by the Rating & Valuation Department.
“Home prices are unlikely to see a significant drop, unless there are unexpected external factors that adversely affect Hong Kong’s economy,” said Knight Frank’s senior director Thomas Lam. “Prices will be supported by strong demand from end users but growth pace may slow down.”
The price surge and additional supply underscore the challenges facing incoming Chief Executive Carrie Lam Cheng Yuet-ngor in addressing what’s been labelled as the biggest public concern among the electorate. In the last 12 months, median home prices in Hong Kong have surged beyond the affordability of many new wage earners and school leavers, while the sizes of newly launched properties have shrunk.