Gov’t freezes commercial land sales as 98,000-unit housing blitz begins

The 2026 Budget targets 196,000 public housing units over five years, up 80%.

Land will be made available for about 98,000 private housing units over the next five years, Financial Secretary Paul Chan Mo-po said in his 2026–27 Budget speech.

Potential supply for this year is around 22,000 units, coming from residential sites, railway property developments, Urban Renewal Authority projects, and private initiatives.

Land sale arrangements will be announced quarterly based on market conditions, outlining plans to expand housing supply.

No general commercial sites will be offered next year due to vacancy levels. The Hong Kong Mortgage Corporation (HKMC) will partner with regional and international investors to fund high-quality commercial projects aligned with Hong Kong’s industrial priorities.

The Development Bureau is inviting interest for post-secondary student hostels on three sites, which may be tendered depending on market response.

Public housing, including Light Public Housing (LPH), is projected at 196,000 units over five years, up 80% from the previous period. About 9,500 LPH units were completed last year, moving toward a 30,000-unit target by 2027–28.

The Basic Housing Unit regulatory regime takes effect in March with a 48-month transition. Private housing completion is estimated at 17,000 units per year, down 8% from the previous five years, with potential first-hand supply over the next three to four years at around 104,000 units.