The Government will increase land supply with a $45 billion injection, to meet Hong Kong’s housing, economic and social development needs. Delivering his 2016-17 Budget today, Financial Secretary John Tsang said the Government will supply 280,000 public housing units from 2016-17 to 2025-26. “I have set aside the investment returns of $45 billion in 2015 as an injection into the Housing Reserve.
Taking this injection together with the 2014 allocation and accumulated investment returns, the balance of the Housing Reserve now stands at $74 billion.” On private housing, the 2016-17 Land Sale Programme comprises 29 residential sites capable of providing 19,000 units. Together with railway property and redevelopment projects, potential private housing land supply in 2016-17 will reach 29,000 units.
Mr Tsang said the property market has showed signs of correction since the middle of last year, and successive interest rates hikes, increasing medium-term flat supply and an uncertain economic outlook, could cause further property market correction.
He urged people to carefully assess the potential risks and their own financial position when making a home purchase decision, particularly the impact of interest rate hikes on their mortgages. On commercial land supply, the Government will put eight commercial/business sites and three hotel sites up for sale in 2016-17, providing 540,000 square metres of floor area and 2,100 hotel rooms.
The Government will also move government facilities in Kwun Tong and Kowloon Bay, convert the Murray Road multi-storey car park to commercial use, and redevelop the Queensway Plaza site, providing a total of 695,000 sq metres of commercial floor area.
HK $45b set for public housing