Demand from mainland buyers key to new long-term HK housing strategy
Members of committee tasked with drawing up long-term housing plan for city say restrictions may have to be imposed to keep prices in check
Hong Kong's first new long-term housing strategy in 14 years must take into account demand from mainland buyers to provide a basis for price-control measures, say members of the committee set up to compile the plan.
The Long-Term Housing Strategy Steering Committee - due to meet for the first time next month and chaired by the housing minister, Professor Anthony Cheung Bing-leung - is tasked with coming up with a projection of the city's housing needs and making recommendations on how to meet demand.
Cash-rich mainland buyers have been accused of inflating property prices, which this year surpassed their 1997 peak. But the government does not record how many homes are sold to non-locals.
Estate agents provide estimates based on the spelling of clients' names, meaning those buying through companies are missed, but say mainlanders account for more than 20 per cent of luxury flat sales.
Marco Wu Moon-hoi, a member of the committee and an adviser to Chief Executive Leung Chun-ying's election campaign, said the study should include a new category of demand from mainland buyers.
"Times have changed. We cannot ignore their demand and have to consider how to accommodate their needs - provided they are genuine needs," said Wu, a former director of buildings. "We have to do a survey to find out how many of them buy a home for self-use, how many for long-term investment and for speculation. We also need to take into account those who come regularly for short stays."