Ian Brownlee

Opinion | Resumption of land is costly and takes time. Here are five better ways to fix Hong Kong’s housing shortage

These ideas that were rejected or ignored deserve a rethink: phase out subdivided flats, change the way public housing eligibility is determined, review mortgage controls, revamp the land premium system, and consider providing a rental subsidy

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Ian Brownlee

Published: 6:30am, 19 Sep 2019Updated: 9:37am, 19 Sep 2019

This month, the pro-government party, the Democratic Alliance for the Betterment and Progress of Hong Kong, proposed resuming land owned by private developers to build more public housing. The Post, in an editorial, welcomed the move and concluded that: “If ever there was a time to think outside the box it is now.”

Beijing newspapers then urged Chief Executive Carrie Lam Cheng Yuet-ngor to resume land from Hong Kong developers, who have been accused of making excessive profits. High housing prices were the reason behind the current unrest in Hong Kong, they said.

Meanwhile, the government has confirmed that a vacancy tax bill will be introduced at the Legislative Council, moving ahead with a plan to discourage developers from hoarding newly completed flats.

Is land resumption the right solution to the problem? Developers own land so they can develop it, mainly for housing. The lack of development of the large areas they own is because the systems of town planning and land administration do not permit it, not because the developers do not want to develop.

Numerous applications have been submitted to the Town Planning Board to change zoning to permit development, for example. They are inevitably rejected.