Chief Executive John Lee today said a sufficient supply of land and housing is crucial to making Hong Kong a better place to live and work, and cited signs of improvement in the situation as he pledged to make further progress.
Sufficient supply
Unveiling relevant measures in his Policy Address today, Mr Lee said inroads had been made during his first year in office, putting the Government on track to meet its target of reducing the waiting time for public rental housing (PRH) to 4.5 years by 2026-27.
While public housing demand from 2024-25 to 2033-34 is estimated at 308,000 units, the Government has identified sufficient land to develop about 410,000 public housing units, which it says will substantially shorten waiting times for PRH.
As for overall land supply, it is estimated there will be more than 7,000 hectares available in the 30-year period to 2048. After taking into account projected demand, there will be a land reserve of at least 1,000 hectares.
Mr Lee said that based on the latest data, the supply of spade-ready sites will reach 3,370 hectares in the 10 years to 2033-34, representing an increase of 90 hectares compared to the 10-year supply forecast made last year.
“Land production” is progressing on schedule, with all such supply coming from Government-led projects, including the Northern Metropolis, he added.
Private housing
According to the Housing Bureau’s Long Term Housing Strategy, the supply target for private housing in the next decade is projected at 132,000 units. Mr Lee said sufficient land will be made available in the next five years to provide about 80,000 units.
Demand management
The applicable period for payment of the Special Stamp Duty (SSD) will be shortened from three years to two years, meaning that property owners who dispose of their property two years after acquisition do not have to pay the SSD, which amounts to 10% of the property price.
The rates of the Buyer’s Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) will also be reduced from 15% to 7.5% to alleviate the financial burden on Hong Kong Permanent Residents who have already owned residential properties in their acquisition of another residential property, and costs to non-permanent residents in the acquisition of residential properties.
Additionally, a stamp duty suspension arrangement will be implemented for acquisition of residential properties by incoming talent to Hong Kong. This will enhance the stamp duty refund regime introduced last year for eligible incoming talent, whereby such individuals are required to pay the BSD and the NRSD at the time of property acquisition and will receive a refund on the stamp duty paid when they have resided in Hong Kong for seven years and gain permanent residency.
Under the suspension arrangement, the payment of stamp duty is suspended at the time of property acquisition, but the purchaser is required to pay the relevant amount if he/she is subsequently unable to become a Hong Kong Permanent Resident.
Releasing development potential
The use of existing land will be optimised to unleash development potential. This includes the revitalisation of Hung Hom Station and nearby sites, repurposing the former Lamma Quarry site and optimal development of green belt areas.
Subdivided units
A task force on tackling the issue of subdivided flats, to be led by the Deputy Financial Secretary, and with the Secretary for Housing as his deputy, will be established. Its ambitions include the eradication of subdivided units and the prevention of their resurgence, and it will present its recommendations in 10 months’ time.
