JLL Comments on the Latest Policy Address
Joseph Tsang, Managing Director of JLL Hong Kong, comments on the 2018 Policy Address and government's 'Lantau Tomorrow Vision'
Increase the public-private housing ratio to 70:30 :
The demand for private housing has recently softened due to the uncertainties caused by the China-U.S. trade war and the interest rate hike. The sales of some new residential projects has slowed. Housing supply – whether it is inadequate or in surplus - largely depends on market sentiment. The Hong Kong Government's plans to increase the public-private housing ratio will not lead to rising prices in the private housing market. The real problem in the shortage of housing doesn't lie in the private housing market, but in the public market so we feel that the Government is taking the right direction.
Launch of the "Lantau Tomorrow Vision":Launch of the "Lantau Tomorrow Vision":
There is no one remedy for solving the land shortage problem in Hong Kong. New housing supply from the "Lantau Tomorrow Vision" may take 20 years to materialise but the policy is on the right track to tackling the issue. However, the Government should rethink its immigration and population planning policies. Under the existing One-way Permit scheme, new arrivals in Hong Kong may reach nearly 60,000 per year, meaning that the city's population may increase by 600,000 in ten years. This influx will add pressure to the public housing market.
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