Two property agencies have joined the chorus calling for more government intervention to reduce land supply and lower development density to boost home prices. Midland Realty and Centaline Property Agency voiced concerns yesterday about the large number of property projects in the hands of the two railway companies and warned this substantial supply could undermine the market. Centaline managing director Addy Wong said the private housing market only accounted for about 26,000 new units last year. 'The property projects [on land along rail lines and on the site of rail stations] could provide 79,846 units. It will take at least three years for the market to digest all of them. The government has to co-ordinate with the developers and the two railway firms to ensure that the market won't be upset by a sudden increase in supply,' Mr Wong said. Developers also called for government moves to co-ordinate the release of land and projects by MTR Corp and the Kowloon-Canton Railway Corp. Mr Wong said although the government had scrapped the Home Ownership Scheme (HOS) and there would be no HOS units in the market after next year, the total annual supply in the housing market should not exceed 30,000 units. He said the government should draft a five-year land-supply policy and a flat-supply timetable by the end of this year to restore investor interest and confidence in the property market. Secretary for Housing Michael Suen Ming-yeung last week invited new ideas on how to stabilise the fragile property market after his nine-point package, launched in November last year, failed to stop the slide. Midland chief analyst Buggle Lau said low interest rates and a weak US dollar were favourable to the property market and the government should boost housing prices by regulating supply, including the rail-related projects.
