Hong Kong needs to 'drastically' increase land supply: FS

The housing issue exposes two major problems in the city – income and asset disparity.

The land and housing supply in Hong Kong must be increased, Financial Secretary Paul Chan said, in order to eliminate subdivided housing in the city.

Aside from increasing short and medium-term supply, Chan said in his blog that methods, such as reclamation projects, should be conducted to “drastically increase” long-term supply and build more land banks.

“'Solving subdivided housing’ is already a clear goal; at the same time, we must try our best to solve the problems of expensive housing, difficult housing, and small housing,” he also said.

Chan noted the land and housing dilemma in Hong Kong exposes two major contradictions: the income disparity and the asset disparity, both between the rich and the poor.

The shortage in the supply of properties has led to higher rents. It also made it difficult for middle-class wage earners to buy their own properties.

“If we can provide reasonable and affordable living space so that the public can reduce the cost of living, or can buy a home, this aspect can solve the problem of high rent and fine living of subdivided housing tenants,” he said.

“On the other hand, significant savings will be achieved. The rental expenses for the public can actually improve the quality of life and gradually accumulate assets.”