Hong Kong is set to launch a research project to tackle chronic housing shortage and sky-high home prices in one of the world’s most expensive property markets.
Property developer, New World Development (0017.HK) disclosed that a committee would study long-standing housing issues, ranging from unaffordable prices, longed waiting times for public housing and a lack of elderly-friendly homes as the population ages.
Adrian Cheng, chief executive of New World and chairman of the initiative, New World Build for Good said: “Solving Hong Kong’s deep-rooted housing issue is fundamental to the city’s future growth. We are committed to working creatively with all parties in search of new solutions that will benefit more people.”
Making housing more affordable has been a priority for all of Hong Kong’s leaders since the former British colony returned to Chinese rule in 1997, although the prospect of owning a home is a distant dream for many.
This month, Reuters reported that Beijing had given a new mandate to the city’s powerful tycoons in a series of meetings this year that they should pour resources and influence into helping solve the destabilising housing shortage. read more
After the report, shares of Hong Kong’s four major developers, CK Asset (1113.HK), Henderson Land Development (0012.HK), Sun Hung Kai Properties (SHKP) (0016.HK) and New World Development (0017.HK), dropped, with analysts citing market worries about potential regulation curbing their growth.