The theory is simple: property prices are high in Hong Kong because land is scarce.
But it isn't. The top six developers, Cheung Kong (Holdings), Sun Hung Kai Properties, Henderson Land, Sino Land, Kerry Properties and New World Development, hold development projects that could provide flats adding up to 42.6 million sq ft of gross floor area when completed. This equates to about 43,000 flats with an average size of 1,000 sq ft.
However, the property giants are moving at their own pace. This makes sense since they have no incentive to flood the market and drive the value of their assets down. But it points to some of the challenges the government faces in moderating price rises.
'As developers have massive land banks in hand, they have full control of when and at what price level to sell flats,' said Professor Eddie Hui Chi-man of Polytechnic University's building and real estate department.
He said the situation in Hong Kong may become like that on the mainland where the central government is looking at land hoarding by developers.
Selling more land in Hong Kong should have undercut prices - but there is a limit to what the government can put on the block. After selling seven sites at auction this year, including lots in Argyle Street in Kowloon and Hung Hom Bay last month and No1 Ede Road, Kowloon Tong, last Tuesday, there is not much left.