Hong Kong Response to High Housing Prices: Expand Land Supply

Hong Kong financial chief John Tsang has promised to expand the city's land supply for residential housing, "in response to rising public anger over soaring property prices and repeated warnings of a looming real estate bubble." Channel News Asia's Hong Kong bureau indicated that the move was precipitated by the "sky-high" housing cost that have been drive by insufficient land for development and speculation (which routinely is intensified where demand for housing is permitted to outstrip supply.

Buggle Lau, chief analyst at property firm Midland Holdings told Channel News Asia that he supported the expansion of the land supply "as a way to bring down house prices," adding "It's simple economics - lower demand and higher supply will bring prices down." Channel News Asia noted that Hong Kong had been shown to be the most unaffordable metropolitan market in the recent (7th Annual) Demographia International Housing Affordability Survey.