HK gov't to supply 480,000 new flats over next decade

The Hong Kong Special Administrative Region government announced Tuesday its new long- term housing strategy -- supplying 480,000 new flats over the next decade, 10,000 more than its previous plan.

All of the additional flats will be subsidized flats -- not public rental flats or private property.

The Secretary for Transport and Housing Anthony Cheung said the government would consider expanding the existing subsidized flat schemes.

"Subsidized home ownership is an essential element of the housing ladder which helps promote social mobility. Apart from building flats under the Home Ownership Scheme, the government will consider how to expand the forms of subsidized home ownership, and leverage on the private sector's capacity to increase the supply of subsidized sale flats," Cheung said.

He added that some proposed quick-fixes such as tenancy control, rent subsidy and the eradication of sub-divide units to ease housing shortage wouldn't work.

"Such measures do not increase housing supply which is at the root of our problems. Tenancy control may even reduce supply and lead to higher asking rent thus aggravating the problems faced by the needy households," Cheung said.