HK Budget – HK to boost supply of small, medium sized flats

Hong Kong – Hong Kong will increase the supply of small and medium-sized flats to “ensure a healthy and stable development of the property market,” Financial Secretary John Tsang said in his budget speech on Wednesday.

“In 2010, the number of private residential units completed will increase to 14,300. In the coming three to four years, we estimate that about 53,000 private residential units will come onto the market,” he said.

In order to further boost supply, Hong Kong will increase land sales, encourage statutory bodies to incorporate a higher ratio of smaller flats in property developments and encourage a secondary market in subsidized housing.

However, concerned about the possibility of an property market bubble emerging, it will seek to curb speculation in the luxury home market by increasing stamp duties on properties selling for $20 million or more from 3.75 pct to 4.25 pct, Tsang said.