Developers are hoarding flats, aggravating Hong Kong’s home shortage
June 20, 2018 - Hong Kong
A group of developers in Hong Kong are disputing suspicion that they are hoarding flats, an act anathema to the government’s efforts to address the housing affordability crisis.
In an interview with On the Record on Sunday, per the South China Morning Post, Stewart Leung Chi-kin, who chairs the Real Estate Developers Association’s executive committee, shifted blame on efforts to boost land supply in the high-density metropolis.
Despite the increase in land supply, developers tended not to sell all their built projects on worries that they might not be able to snap up new lots, Leung said.
“When the supply increases, it is natural that the leftovers will increase,” he added.
Leung’s comments come as Chief Executive Carrie Lam prepares to announce a decision on the controversial Vacancy Tax. The measure will impose levies on completed residential properties that had been lying empty in the Chinese SAR.
The government estimates that 9,000 completed but unsold homes are held by developers.
However, many of the 9,000 flats were only completed last year and "are still in the sales process,” Leung said.
Only 6,000 flats lay truly vacant last year, with most either awaiting buyers or lacking documents needed to put them on the market, according to real estate and construction sector lawmaker Abraham Razack.
Source : SCMP via Property Report
Trends, property tax