Policy Address

V. Housing, Land and Transport

Housing

90.         Housing is still the most important livelihood issue we have to address.  Exorbitant property prices, high rentals, small living spaces, the proliferation of subdivided flats and record high PRH applications all tell us clearly that we must tackle the housing problem with resolve and perseverance.

91.         Since taking office, the current-term Government has stated its determination to increase housing supply and curb property speculation and overheated investment.  It has also reminded the community of the need to watch out for fluctuations in the property market caused by a long period of ultra-low interest rates and low supply.

92.         Our efforts over the past three and a half years have produced results.  The housing supply has significantly increased and property prices and rentals have started to fall, reversing the perception that property prices and rentals can only go up.  Some people wonder whether the Government will relax the demand-side management measures or even reduce land supply.  In the past three and a half years, other government officials and I have reiterated the Government’s courage and determination to tackle the housing problem and there should be no doubt in this regard.  While it is the Government’s responsibility to provide land and public housing to cater for the housing needs of the public, it is not the Government’s duty to ensure that property prices can only go up.  Neither should property prices be kept at a high level by generating a man-made shortage.  The current property price and rental levels are still beyond what people can afford, and have distorted the values of the younger generation.  We should continue to tackle the housing problem head-on and must not concede.

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