SDEV speaks to the media

Following is the transcript of remarks by the Secretary for Development, Mr Paul Chan, at a media session after attending a radio programme today (January 24):

Reporter: (On residential housing supply in the coming few years.)

Secretary for Development: I think we have to take a hard look of the facts and figures. It is estimated that in the coming three to four years, the supply of private residential housing will be about 74 000 units. We also have to take into consideration the completion in the coming five years. The completion of residential units in the coming five years is estimated to be on average 14 600 units. This is quite a high figure when compared with the five-year yearly average in the preceding period which was about 11 400 units, so the completion in the coming five years on average is relatively higher. Some of these units will become new supply because for those who have bought the units to be completed in the coming five years, when they take possession and move out, the units that they are occupying for the moment will become supply to the market. This is something that we have to look at. I also observe that the pricing of the first-hand units and the transaction price in the secondary market, the gap, the premium is narrowing in the past 12 months or so. This is also an indication of the sentiment of those selling these units towards the market situation in the coming few years.

(Please also refer to the Chinese portion of the transcript.)

Ends/Saturday, January 24, 2015
Issued at HKT 18:36