Chief executive hopeful Leung Chun-ying suggests limiting the sales of new flats to Hong Kong residents, as part of his land policy proposal to increase land supply and to keep property prices at reasonable levels.
The proposed pilot scheme divided economics scholars on its perceived effectiveness and impact on the city's reputation as a free economy. Foreign investors might interpret this as a sign of Hong Kong leaning towards protectionism, one said.
It is the third policy proposal Leung has released so far - after he put forward a population policy on Wednesday that advocated a ban on mainland mothers without Hong Kong husbands from giving birth in the city's public hospitals.
Leung said yesterday that foreign investments had inflated property prices in recent years, making it impossible for many local residents to buy a place of their own.
'The proposed policy is to tackle the concern that there is too much external demand for investment in Hong Kong residential properties,' he said.
To test the scheme, Leung said he would pick a plot of land aimed at middle-class buyers and introduce a clause in the lease during land sales requiring the flats to be sold - and resold within a defined timeframe - to Hong Kong residents only.
He did not give details on the size or location of the land, or the number of flats involved.