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Hong Kong housing
Opinion

Hong Kong is solving its housing crisis, and the next chief executive should just carry on the good work

Lau Ping Cheung believes the Leung Chun-ying government has pointed the city in the right direction in meeting its land and housing shortages, and the next chief executive would be wise to follow – and improve on – the plan

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Lau Ping Cheung believes the Leung Chun-ying government has pointed the city in the right direction in meeting its land and housing shortages, and the next chief executive would be wise to follow – and improve on – the plan
Lau Ping Cheung
Unlike the previous administrations, the government has also reduced the size of land parcels for public sale, thus enabling small and medium-sized developers to participate, curbing the monopoly by major developers. Illustration: Craig Stephens
Unlike the previous administrations, the government has also reduced the size of land parcels for public sale, thus enabling small and medium-sized developers to participate, curbing the monopoly by major developers. Illustration: Craig Stephens
As the race to become the next Hong Kong chief executive heats up, it’s not news that housing remains one of the key issues. Hong Kong has one of the world’s most expensive property markets, not just for the average person who simply wants a roof over their head, but also for businesspeople in this financial hub. According to the UBS Global Real Estate Bubble Index 2016, it now takes 18 years for someone on a skilled worker’s income to buy a 600 sq ft flat in Hong Kong.

Flats are not just expensive but tend to be cramped. The average living space per capita in Hong Kong, for example, is about 160 sq ft, way behind that of Singapore, Shenzhen and Shanghai, where the figure is close to or above 300 sq ft.

Office space is also in short supply. The latest Knight Frank Skyscraper Index says Hong Kong can expect an estimated shortfall of 2 million sq ft of office space by 2020.
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The problem is the low supply of land. The truth is, the non-intervention policy of Donald Tsang Yam-kuen’s administration bears certain blame.

Land and housing issues will be a challenge for the next chief executive. I believe the best policy is to tackle the root of the problem: low land supply.

Housing policy will make or break new administration

The city’s next leader should thank Chief Executive Leung Chun-ying for laying down a farsighted land and housing policy. Photo: Sam Tsang
The city’s next leader should thank Chief Executive Leung Chun-ying for laying down a farsighted land and housing policy. Photo: Sam Tsang
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