The hiccups at some recent events, from the Wan Chai bazaar to the world rallycross race, are the result of a lack of coordination. A transformation of the government’s role is desperately needed.
Rather than be deterred by sluggish market sentiment, the government should adapt its approach to land creation and housing construction – by sequencing its development priorities, offering smaller land parcels, or turning more land over to building subsidised housing.
On top of regulating the private market, the government could help make the subsidised flat market more liquid while ring-fencing it for local residential use. It should offer more subsidised flats for sale and also start building bigger homes.
Just creating the San Tin Technopole won’t be enough on its own to diversify the economy. Innovative ideas on public-private partnerships, business incentives, land allocation and more are necessary to achieve the lofty goals.
With mortgage rules relaxed and more subsidised flats released, demand for small private flats has fallen, causing developers to start switching to mid-sized housing. But for all Hongkongers to be able to ‘live bigger’, the land and housing shortage must be tackled at the root.
Extend the mortgage guarantee on HOS resale flats to make loans more affordable, abolish limits on buyer eligibility certificates and give failed applicants of new flats a weighted chance