HONG KONG, Jan. 16, 2013 /PRNewswire/ -- Cushman & Wakefield, the world's largest privately owned real estate services company, welcomes the government's focus on housing supply and shortage of land and concrete measures to combat the issue. Cushman & Wakefield believes the policies are effective in resolving some of the housing problems, and puts forward the following proposals to further enhance the policies.
Cushman & Wakefield supports the use of GI/C sites and green areas for residential projects in which land resumption is not necessary. Cushman & Wakefield believes the government is going towards a right direction. The proposed development on the former Tai Hom Village site indicates that the government has a clear implementation plan and determination to resolve the problem of shortage of land. Nevertheless it should be pointed out that apart from the site itself, infrastructure, transportation and community facilities in the vicinity should also be considered. The ultimate goal of converting these land parcels is to develop new self-contained communities to accommodate population growth and the city's future development.
The government announced that only 9,800 private residential flats and 15,000 public rental housing (PRH) units were completed per annum in the past five years, but no Home Ownership Scheme (HOS) flat was built. In other words, the supply was unable to meet the expected demand of 40,000 flats per year. The Chief Executive points out that 128,700 private residential flats will be provided between 2013 to 2020, equivalent to 19,000 flats per year. Taking into account the 22,000 newly completed and surrendered PRH units each year, the supply of all residential flats will reach 41,000. This is a clear indication that the government is determined to stabilize the property market by increasing housing supply to meet the market demand. It is believed that the disclosure of housing supply information will help to reduce the speculation on housing market and stabilize the housing prices in the long run.
According to the results of 2011 Population Census, Hong Kong has a population of 7.07 million, 28.2% of which are potential home buyers who aged between 28 and 44. Anticipating the annual population growth as 0.6%, there will be 11,962 potential home buyers per annum. Assuming an average household size of three people per unit, the market would need an additional 4,000 flats every year. Assuming 50% home buyers purchase private residential flats and the rest opt for subsidized flats. Cushman & Wakefield recommends that the government should review the housing supply on a yearly basis to meet the changing demand.
The Policy Address indicates Kowloon East has the potential to release an additional 4 million sq m (or equivalent to 43 million sq ft) of land for commercial uses, which is circa 2.5 times of the current total area of Grade A office space in Central. Cushman & Wakefield believes that the new supply will ease the shortage of Grade A office in the city and help Hong Kong to maintain its competitiveness in the region. It also demonstrates that the government has a forward-looking attitude on speeding up the development of commercial land uses. Cushman & Wakefield suggests the government to release more detailed information on these commercial sites as well as their launching schedules in a timely manner.
In addition, apart from Kowloon East, the government could also make efficient use of land in Kowloon West to respond to the continuous demand for commercial space. Cushman & Wakefield believes that the construction of Central Kowloon Route will shorten the journey from Kowloon Bay to Yau Ma Tei by 25 to 30 minutes. It will also stimulate the development of the whole Kowloon area, improve efficiency of land use as well as ease the shortage of commercial sites in Central. Cushman & Wakefield hopes that the Central Kowloon Route can be completed in a timely manner to meet the development of both Kowloon East and West.
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 253 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In China, Cushman & Wakefield maintains six market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and Hong Kong. More information is available at www.cushmanwakefield.com.
