Policy Address

109. In terms of costs, it is not high construction costs but expensive land premiums that have led to high property prices and rentals. Most families in Hong Kong can afford the construction costs passed onto them, yet the exorbitant land premium is beyond their means. This is not due to inadequate land supply but shortage of land zoned for housing development. Today, only 7% of land in Hong Kong is zoned for housing purposes.

110. The housing problem in Hong Kong boils down to land use, which is not a technical issue, but a conceptual one. So long as we dare think out of the box and re-examine our land use planning in a serious, scientific and objective manner, we will be able to increase land supply and lower the levels of land premium, property prices and rentals, thereby alleviating the housing burden and improving the living environment of our community, and ultimately solving the housing problem at the root.

111. Although this is the last Policy Address of the currentterm Government, it is incumbent on us as a responsible government and members of the Hong Kong community to sum up and share our experience with the public. I invite you to reexamine our land use planning for the benefit of Hong Kong’s long-term development and our next generation.

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