Analysts say an increase in housing supply is likely to accelerate the earnings of developers as the new buildings will be absorbed by the market.
They said Chief Executive Tung Chee-hwa's stand on rocketing residential property prices would have no effect on the extraordinary profits of Hong Kong developers.
Senior property analyst at ING Barings, Desmond Cheung, said: 'I consider the SAR moves so far to be gimmicks and not very effective at all.' Morgan Stanley's head of research, Peter Churchouse, said Hong Kong developers generally were not worried about an increase in the amount of residential property on the market.
'The new targets mean private developers will be increasing their output to 35,000 or 40,000 units a year up from around 20,000 last year, which the market can more than absorb,' he said.
There also is uncertainty over whether future population forecasts are correct.
Mr Churchouse said: 'There is the question of whether 85,000 units will be enough to satisfy the demand for flats, given the huge number of returning emigrants from overseas and immigration from China.' Analysts said the supply crunch did not seem likely to ease soon, meaning prices would continue to rise.