Hong Kong may miss annual homes supply target as protests delay land sales
- The government may only supply land for 11,850 units of homes by March 2020 versus its target of 13,500 units
- Supply shortage is unlikely to stoke further home price increase as demand has weakened amid protests and recession
Hong Kong may fall short of its annual target of supplying new private homes to in the city as street protests and an economic recession disrupted its efforts to alleviate a housing shortage in the world’s expensive residential market. The government and the private developers have provided enough land bank to build 9,820 homes in the nine months to December 31, Secretary for Development Michael Wong said on Tuesday. It will only release land to accommodate another 2,030 units in the next three months, indicating about 10 per cent deficit versus its 13,500 target for the year to March 31.
“We are almost meeting 90 per cent of our annual target” based on existing and future land provision, Wong said, blaming part of the shortfall on the smaller contribution from private developers. Achieving its full-year target will depend on whether additional supply can be provided by private developers, he added.
For its part, the government has earmarked two residential land parcels in Mong Kok and one in Kwun Tong (1,850 units of homes) for tender between now and March 31. The Urban Renewal Authority will separately invite bidders for a parcel of land in Sham Shui Po, capable of providing 180 units of homes.
The housing shortage has become a thorny issue for the government after a 15-year market boom pushed home prices to record-high through May this year, subsequently sowing public discontent amid months of anti-government protests. Still, with the economy in recession, the shortage is unlikely to fuel further price increase in near future, analysts said.
