The Hong Kong government is set to surpass its target of providing land yielding 19,000 new private homes for the 2015/2016 fiscal year, reported The South China Morning Post.
In its last land sales programme for the financial year, the authorities on Wednesday launched four more plots to be sold over the next three months. Offering a total of 1,550 housing units, these sites are located in Stanley, Ho Man Tin, Sha Tin and Tuen Mun.
Together with the flats sited on other plots sold this year and the 1,100 units to be developed by MTR Corporation at Lohas Park, the overall figure is expected to reach 20,300 units at the end of the fiscal year.
“We are pretty confident that the private housing land supply target for this year will be met,” said Development Minister Paul Chan Mo-po, adding that the existing property cooling measures will remain in place.
“We have observed softening in the property market, but in terms of (the) government’s determination to supply private residential land to the market, there is no change in our policy or position.”
Meanwhile, Centaline Property Agency’s Managing Director Louis Chan Wing-kit said the government’s housing supply announcement would negatively affect buying sentiment.
“Why buy today if abundant supply is coming and prices will be lower tomorrow and the day after tomorrow?” he said. “When home prices are falling, people will stay away from buying.”
The Centa-City Leading Index, which monitors resale home prices, dipped by 0.32 percent week-on-week to 136.86 for the week ended 20 December. It also reflects a 6.8 percent decline in residential prices since it peaked in September.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
