Can developer land banks be unlocked?

Infrastructure investment

A supporting infrastructure of roads, rail, public transport, sewage system, retail shops, electricity and piped water is vital for housing location. The SAR government has followed a demand-led response to infrastructure. This is self-defeating, said Ryan Ip of Our Hong Kong Foundation. He points to the proactive infrastructure provision of the Singapore and Chinese-mainland authorities.

The 2014 Railway Development Strategy identified seven projects to be completed by 2031. Construction has not begun. The deadline will not be met. Developers will have no reason to commit to housing construction. Ip expects this lack of railway completion to inhibit housing supply over the next decade.

The North Metropolis initiative that covers Shenzhen-Hong Kong Boundary Control Points Economic Belt, Yuen Long, and North District, could offer relief to the housing situation in Hong Kong. "The proposed five MTR train lines with 10 stations will prompt new high-density developments on top of the adjoining stations," Lau of Colliers said. "It's high time the government executes what it promised."

What to do next?

Streamline procedures for land modifications and town planning approvals

Review the distribution of land for housing and other purposes (brownfields, woodland, grassland, etc.)

Step up infrastructure ahead of potential housing development

Consider “land options for housing” to make residents stakeholders

Speed up new town development and railway projects

Incentivize developers to release their New Territories land banks