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New Hong Kong housing target won't hit home prices, say analysts

Increase in supply sufficient to maintain market stability, say developers

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Of the targeted supply, 200,000 will be public rental flats. Photo: Nora Tam

Property analysts and developers do not see any disruption in Hong Kong's housing market after the government's proposed move to increase the supply of private homes to 19,000 a year.

"With this supply target, Hong Kong home prices can remain stable and any major correction is unlikely," said Thomas Lam, the head of valuation at international property consultancy Knight Frank.

The target of housing supply in the coming decade will go up from 470,000 to 480,000 under a government proposal to tackle the city's housing shortage, Secretary for Transport and Housing Anthony Cheung Bing-leung announced yesterday.

Of the targeted supply, 200,000 will be public rental flats; 90,000 will be subsidised flats for sale, and 190,000 private units.

Lam described the target as realistic given demand for new homes in Hong Kong is about 20,000 to 22,000 units a year.

"The targeted supply will be well absorbed by the market," he said.

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