The main issue here is that the government is planning long term tactics that could take almost 4 years to take effect. Meanwhile prices have gone up 120 percent since 2008 and show no signs of slowing down.
The Hong Kong government pledged on Wednesday to bolster land supply and earmarked $580 million in the coming five years to seek out potential new areas for land reclamation in its annual budget to help ease the supply crunch.
But Nicole Wong, regional head of property research at CLSA said government efforts to boost supply will have a limited impact on reining in prices and the government should look more towards measures to curb demand.
“You can see the current government trying to sell land with a lot of effort, but it takes time,” Wong said. “The only alternative would be to intervene on the demand side… So if the government doesn’t intervene on the other side then the whole system collapses.”
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