Our Hong Kong Foundation (OHKF) launched its latest Land & Housing Policy Research Report. “Cutting Red Tape to Catch Up with Shortfalls in Land and Housing Supply”.

The report highlights that housing supply has plunged with no signs of rebound. The present housing crisis is likely to be exacerbated, as the report shows that various cumbersome administrative procedures cripple the development of housing supply.

Construction activities of private housing have drastically slowed down in 2019. Leading indicators of the development cycle, including spade-ready land supply, superstructure commencement, and presale consents all recorded a sharp reduction of 35-53% from their respective peak levels over the past one to two years. Taking into account the industry slowdown, OHKF estimates the average annual completion of private housing to be 16,000 units in 2020-2024, down 14% from our previous estimate for 2019-2023.

The report also estimates that the average annual completion for public housing will be 20,400 units, which is 32% lower than the Government’s supply target of 30,100 units. In the report, we also scrutinise three cases, in which housing projects do not proceed smoothly beyond the stage of rezoning due to delays in subsequent procedures.

OHKF also reviewed the current methodology of Long Term Housing Strategy in household projection, and explained why the methodology would lead to a vicious cycle of downward revision of the supply target.

In view of a dire supply outlook, OHKF urges the Government to expedite on land development projects, and to review and streamline the existing administrative procedures on land and housing development.