Is Hong Kong’s land claim assessment system broken and in need of reform? Experts evaluate

Hong Kong should reassess land demand taking into account structural economic changes and the government’s operating budget deficit, a leading financial policy adviser and veteran researcher said, after the city leader ignored his predecessor’s concerns about oversupply.

Professor Liu Pak-wai, director of the Hong Kong Monetary Research Institute, which is affiliated with the city’s de facto central bank, made the call amid concerns in Beijing about developers’ reluctance to participate in government-led projects. Some observers said companies were concerned about land values ​​falling if there was an oversupply.

Former chief executive Leung Chun-ying, who is now vice chairman of the Chinese People’s Political Consultative Conference, the country’s top political advisory body, last month warned of potential oversupply in the slow market, highlighting a costly land reclamation at the time of the financial crisis. open.

However, current leader John Lee Ka-chiu has declared that it is necessary to create a land bank to ensure the government maintains control of supply.

Liu said in an interview with the Post: “We should not stop land production due to seasonal changes… but I believe the Hong Kong economy is experiencing some structural changes, given the intensified geopolitics and integration with the mainland.

“It is time to review and evaluate the demand for land and how the government can accelerate the land production process.