Hong Kong Chief Executive Leung Chun-ying said on Thursday that the recent dip in residential rent and property prices shows the government's efforts to increase housing supply over the past three years have been effective and there is no need to relax the cooling measures for now.
Speaking at a radio phone-in program this morning on his 2016 Policy Address, Leung said property prices are still beyond what many people can afford so the cooling measures will stay, adding the key to solving the housing issue is increasing supply.
The government will continue to find more land for public housing and press ahead with new development area projects. In response to a caller's question on the mortgage tightening measures introduced to curb property speculation, Leung said they are necessary for maintaining the financial system's stability when interest rates start to rise, adding financial policy is separate from housing policy.
Leung delivered his annual policy address on Wednesday, saying the government will continue to boost housing supply and will not relax demand-side management measures or reduce land supply. He said in his policy address that 76,700 public rental housing unit will be produced over the next five years.
As for private housing, approximately 87,000 units from the first-hand residential property market are expected to be supplied for the coming three to four years.
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