Hong Kong chief executive’s pledge on Wednesday to resolve the territory’s housing affordability crisis may seem long on promise, but falls short on practical solutions, analysts told CNBC.
Leung Chun-ying spent the bulk of his two-hour annual policy speech focusing on the real-estate market, calling housing “the most critical of all livelihood issues in Hong Kong.” Among measures announced were more opportunities for lower-to-middle income citizens to become homeowners and for public rental housing residents to buy flats built by the Housing Authority.
The city’s property prices have skyrocketed over 100 percent in the past six years and rank among the world’s most expensive, according to Reuters data, fueled by an environment of low interest rates, surging demand from mainland buyers and a shortage of developable land.
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