In recent years, Hong Kong property prices have soared rapidly. Calls from all sectors of society to stabilize the property market for the benefit of people's livelihoods have grown louder, and various countermeasures have been proposed. The SAR government insists on regarding the expansion of land supply as a fundamental solution.
In last year's Policy Address, Donald Tsang emphasized the land reserve plan, stating that the government had completed a study on industrial land across Hong Kong and proposed converting approximately 30 hectares of land for residential use. In this Policy Address, the "6 measures" to develop land resources were announced again, releasing a total of at least 260 hectares of land for residential development.
Alnwick Chan, Chairman of the Housing Policy Committee of the Hong Kong Institute of Surveyors, told China News Service reporters that the government's vigorous development of land reserves plays a significant role in stabilizing the property market. In the past, the government's land policy lacked transparency and continuity, often resorting to "digging a well only when thirsty" during the peak of the property market. The government's vigorous development of useful land can serve as "storing grain to prevent famine." Chan described it as: "This is like storing more flour first so that more bread can be made to satisfy hunger when needed."
Chan believes that there is still significant room for the government to develop land reserves because there is much undeveloped land in Hong Kong, including abandoned farmland and caverns. As for some land previously zoned for factories, with Hong Kong's economic transformation, the utility of this land has diminished; therefore, society should first reach a consensus on modifying the usage of these factory sites.
The government's goal is to provide land capable of building 20,000 private residential units annually on average over the next 10 years. Combined with an average annual construction of 15,000 public rental housing units and 5,000 Home Ownership Scheme units, land for 40,000 residential units is needed each year. Chan believes that the government must hold at least 3 to 5 years of land reserves to cope with the demand.
Donald Cheung, Executive Director of Emperor International, also pointed out that if the government's land reserve measures can be implemented sustainably, it will achieve a balance between supply and demand, leading to a healthier development of the property market.
Cheung stated that the government needs to turn "raw land" into "developed land," which includes converting industrial land into residential land, a process involving many regulations. Therefore, the government must plan ahead to respond to the demand for land reserves. In addition, the government should also make long-term plans for the urban planning and supporting facilities of new towns. With Hong Kong's economic transformation, past new town planning is no longer applicable to the current situation in Hong Kong. The government should align with the direction of Hong Kong's economic transformation to better utilize land and increase the value of land resources.