Hong Kong chief executive urged do more on land supply and ease building costs

It turns out that introducing cooling measures was the easy part of the government's ambition to tackle the city's housing problem. At the end of his second year in office, experts say Chief Executive Leung Chun-ying needs a more comprehensive land supply programme and should consider alternatives to control construction costs to ensure home prices are contained.

"I expect a more detailed land supply plan in the coming years such as which districts will be the focus, how many units and when they will be produced," said Vincent Cheung Kiu-cho, the national director for Greater China at property consultancy Cushman & Wakefield.

While importing labour has become a sensitive political issue, Cheung urged the government to enhance the use of precast technology to build homes in order to control rising construction costs.

Following the release of Leung's report card on his second year, challenges that lie ahead include the recent pickup in home prices and improved buying sentiment, particularly in the primary market.

Secondary prices rebounded over the past three weeks, according to the Centa-City leading index, which tracks secondary home prices at 100 estates. The index rose 1.05 per cent week on week to 121.6 on Friday, the highest in 41 weeks.

Agents reported an increasing number of record-breaking deals in the secondary market in various districts such as Lam Tin, Sha Tin and Tin Shui Wai.