The private housing completion is 19,600 units. An announcement of establishing the land reserve will be published next quarter.
The Budget mentions not much of the property market. It does not relax the strict measures at the request of market participants but reiterates the importance of continuing to increase supply, searching land, and establishing land reserve. Chen Mao-Po, the Financial Secretary, expresses that although the property market has been adjusted in the second half of last year, the current property prices are still above the affordable level, so relaxing strict measures is unsuitable. The estimated annual average number of private housing completion in the next five years is about 19,600 units, an increase of 25% over the average of the past five years. The government will reassess land demand and announce the newly introduced concept of land reserve in the second quarter as a blueprint for future land searching.
(by Lai ChiTin)
Government sources said that the authorities have been paying attention to the situation. Although the property market is relatively dull, it is only "dull for a few months," and we must continue to observe the market trend. Some "strict measures" are targeted at specific groups, such as overseas property purchases or investment purchases. So the government believes that it is not appropriate to relax the strict measures of such groups for the time being. It is also not applicable to relieve the restrictions on the first housing people, and it is necessary to monitor the situation closely.
Housing policy continues to focus on increasing supply.
Chen Mao-Po points out that the government's policy on the property market will continue to focus on increasing supply. According to the latest forecast, it is estimated that the average annual number of private homes completed in the next five years will be about 19,600 units, an increase of 25% over the average of the past five years. In the future, the government will continue to research several projects that can increase land supply on a large scale. It is revealed that the Land Supply Steering Committee led by it in the past year coordinated Policy Bureaus to reassess the future land demand in Hong Kong and introduce the concept of the land reserve. It is expected to be announced in the second quarter, as a blueprint for the government to find and develop land in the future.
According to an earlier report by the Task Force on Land Supply, the government has been advised to establish the land reserve to reserve flexibility or buffer space in land demand planning. The report points out that development projects such as new development zones and new town expansions, which are the primary sources of medium and long-term land supply, take 10 to 15 years from research, planning, design, and implementation. The process is full of variables, while the actual implementation time and land supply often lag behind expectations. Therefore, with the establishment of a land reserve, the government can be more flexible in planning and timely provide different land as needed. And it makes a more stable and sustainable land supply in the market. Land reserve can also help Hong Kong increase its overall development capacity to meet unpredictable economic opportunities and challenges and to achieve its vision of improving the living environment and building a livable city.
Land shortage far exceeds 1,200 hectares.
Government sources said that the Land Task Force had estimated the shortage of land in Hong Kong to 1,200 hectares. While the authorities further estimated that the latest shortage would far exceed this number, and the actual figures would be announced by then. Chen Mao-Po believes that the lack of land supply hinders economic development, so it is necessary to increase land supply and fundamentally change the problem of insufficient land. Decisive and large-scale work must be done. He expresses that the Development Bureau is seeking funding from the Legislative Council for related research on "Lantau Tomorrow" for engineering, planning, and financial evaluation, and is currently "queuing up" in the Legislative Council. Government sources say that the research will take about 42 months if "Lantau Tomorrow" obtains preliminary research funding.
Three Plans are "queuing up" for funding.
Chen Mao-Po also points out that the government will strive for funding for the Lung Kwu Tan reclamation plan and re-plan Tuen Mun West research as soon as possible, involving a total of about 440 hectares of land for industrial and residential purposes. Which are also "queuing up." Government sources say that the research will take about 30 months if the research funding is obtained. The plan involves more than 20,000 residential units and will be completed as soon as 2030.
Besides, the authorities have completed rezoning for 135 land sites in the past six years, involving more than 147,000 public housing units and about 44,000 private units, and another 12 land sites are being rezoned. The authorities expect that another 25 sites will be rezoned next year in succession, involving nearly 85,000 units, 90% of which are public housing units.
