HK property heir criticises land policies, seeks overhaul

Sun Hung Kai director calls for urgent changes to address city's housing shortage

Hong Kong's home prices are expected to set a record this year as demand continues to outweigh supply in a city where space is precious and the government sells land gradually through auctions to developers. JPMorgan Chase & Co expects home values to
Hong Kong's home prices are expected to set a record this year as demand continues to outweigh supply in a city where space is precious and the government sells land gradually through auctions to developers. JPMorgan Chase & Co expects home values to rise 10 per cent this year.PHOTO: EPA-EFE
Hong Kong's home prices are expected to set a record this year as demand continues to outweigh supply in a city where space is precious and the government sells land gradually through auctions to developers. JPMorgan Chase & Co expects home values to
Hong Kong's home prices are expected to set a record this year as demand continues to outweigh supply in a city where space is precious and the government sells land gradually through auctions to developers. JPMorgan Chase & Co expects home values to rise 10 per cent this year.PHOTO: EPA-EFE

HONG KONG • A Hong Kong property heir has criticised the local government's land policies and suggested an overhaul as housing problems become the priority for leaders in the world's least affordable residential market.

"Many procedures and systems are obsolete and time-consuming," Mr Adam Kwok, an executive director and a third-generation heir at the city's biggest developer Sun Hung Kai Properties, said on Thursday. "There isn't a mentality to do as much as possible, which leads us to today's situation."

Mr Kwok was speaking at a forum hosted by a pro-government party, and was joined by lawmakers and scholars in calling for urgent changes to land policies to address a housing shortage.

Hong Kong's home prices are expected to set a record this year. Demand for homes continues to outweigh supply in a city where space is precious and the government sells land gradually through auctions to developers.

Attending the event as a representative of the Real Estate Developers Association of Hong Kong, Mr Kwok said the government did not take full advantage of available land resources.

He suggested that it explore the development of buffer zones along wetlands and green belt areas designated to prevent encroachment by urban development.

He also urged the government not to stop private housing projects from proceeding in a new development area simply because a planned road or other infrastructure has yet to be completed.

It is rare for a property executive to publicly call for broad changes to government policy in a city where developers have often been blamed for soaring home prices.

Major real estate companies including Sun Hung Kai hold around 100 million sq ft of farmland in the New Territories - a sign of land hoarding, according to critics.

Mr Kwok's remarks came just hours after Chief Executive Carrie Lam defended her administration's efforts in solving the housing crisis in a session with lawmakers.

Mr Xia Baolong, China's top official to Hong Kong, has said he expects the city's housing problems will be "greatly improved" by 2049 as the economy and society prosper under the national security law, according to a transcript published by the Hong Kong and Macau Affairs Office.

The proposals put forward by Mrs Lam, including speeding up infrastructure construction, are good, Mr Kwok said. He also praised the creation of a facilitation office by the government to accelerate the approval process.

"I recognise the administration's determination and I see that some procedures are being sped up," he said. But the government still needs an appropriate team and policies to solve the issues, he added.

The supply of new residential units has declined in recent years. The number of private homes that can be produced from available land plots plunged from a peak of 25,500 three years ago to 13,020 this year, according to think-tank Our Hong Kong Foundation. That's putting pressure on prices. JPMorgan Chase & Co expects home values to rise 10 per cent this year.

A constantly heated housing market is a political burden in Hong Kong, where only 52 per cent of residents own their apartments. Beijing sees the housing crisis in the city to be the origin of social discontent fuelling mass protests two years ago.

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A version of this article appeared in the print edition of The Straits Times on July 17, 2021, with the headline 'HK property heir criticises land policies, seeks overhaul'. Subscribe