The Hong Kong Chief Executive, Leung Chun-ying showed the progress of the property policies in his final policy address. He pointed out that the various land-supply initiatives through the short, medium and long term can provide more than 600,000 housing units. In the short to medium term, the Government will provide more than 380,000 flats units by changing land use and increasing development intensity. This involves some 210 housing sites identified through land-use reviews, the Kai Tak Development Area, the Diamond Hill Comprehensive Development Area, reuse of three quarry sites, railway property-development projects, and urban renewal projects. In the medium to long term, In the medium to long term, various new development areas (NDAs) and new town extensions (including Kwu Tung North and Fanling North NDAs, Tung Chung New Town Extension, Hung Shui Kiu NDA and Yuen Long South Development), as well as potential railway property development projects being planned (including Siu Ho Wan Depot and Pat Heung Depot), can provide over 220 000 residential units and over 8.6 million square meters of commercial and industrial floor area.
This policy address emphasized the housing supply, with more than 90,000 supplies in public housing units and private flats respectively in the coming three to five years, which in line with our expectations. This also shows the government is more optimistic than before. Yet, the high housing prices and the difficulty of the young people buying a property, are still the problems that the government has to face. In conclusion, we believe the land and housing supply could be met in the coming three to four years. However, the long-term supply depends on the situation of new lands which the government has to maintain the long-term implementation. We believe this is the main challenge of the new government in the future.
Two major property developers--Cheung Kong Property Holdings and Henderson Land Development are optimistic about the Hong Kong property market in the Year of the Rooster. They planned to speed up their new project launches in Hong Kong which respectively have 6 new projects with 2,065 units and 5 projects with 1,320 units to be put on sale.
The 6 new projects of Cheung Kong Property Holdings includes various types of flat from one-bedroom unit to house in Repulse Bay which could meet the needs of different types of people. The Crescendo in Yuen Long will be put on sale after the Lunar New Year.
Henderson Land Development will launch 5 projects with mainly small-scale units this year. The two new projects at Queen's Road West and Mansion Street in North Point on Hong Kong Island have caught the market’s eye. Two projects with 650 units and 460 units respectively, mainly open-plan, one-bedroom and two-bedroom units, are expected to put be on sale in the half of this year. The other projects are in smaller scale, including Yuen Long and Aberdeen projects, will be launched in the second half of the year. Moreover, there are two non-residential projects which are located in Wang Kwong Road in Kowloon Bay and Hillwood Road in Tsim Sha Tsui.
Also, a joint project -Pavilia Bay in Tsuen Wan by New World Development recently uploaded the price lists and opened the show flats to public. The flats, with sizes ranging from 306 sq. ft., mainly one-bedroom units to three-bedroom units, will be put on sale before the Lunar New Year.