Hong Kong can’t solve its housing problems without trade-offs

Housing is our No 1 social concern and the government’s top priority. Both housing prices and rents have soared over the years in Hong Kong, making housing increasingly unaffordable for the general population, especially the working poor.

Following wide public consultation, the government announced its Long Term Housing Strategy in December 2014, with a 10-year rolling target of new housing supply based on holistic demand assessment. The latest 10-year supply target, for 2017/18 to 2026/27, remains at 460,000 new units, of which 200,000 are public rental housing and 80,000 subsidised sale flats.

In 2010, the previous government introduced a special stamp duty to discourage short-term speculation. This term, we enhanced this duty, and introduced a buyer’s stamp duty in October 2012 to curb non-local purchases. Meanwhile, the Monetary Authority has implemented several rounds of macro-prudential measures for property mortgage loans. In February 2013, the doubled ad valorem stamp duty was introduced for all property transactions, targeted at those who are not Hong Kong permanent residents, as well as permanent residents who already own a residential property here.