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.