HA to assess 2026/27 budget plan as constructions cost rise

HA to cut annual operational costs by 2% for two years

The Hong Kong Housing Authority (HA) has endorsed its revised budget for 2025/26 and proposed budget for 2026/27, with plans to maintain financial stability despite rising construction costs.

"The HA will trim its annual recurrent expenditure by 2% for both 2026/27 and 2027/28," said Billy Mak, Chairman of the HA Finance Committee.

The authority expects to have sufficient funds to cover operational and construction expenses through 2029/30. 

However, construction spending is set to increase as the number of new public housing projects grows.

To manage costs, the authority has established a Project Facilitation Office to coordinate departments and improve efficiency in housing construction. 

One plan includes adjusting the ratio of public rental housing to subsidised flats to 60:40, boosting income from the sale of Home Ownership Scheme flats.

The budgets and forecasts will be reviewed in an open meeting on January 19 before submission to the Chief Executive for approval.