When it comes to the real estate industry in Hong Kong, Li Ka-shing and other real estate businessmen cannot be avoided. Both the shared area and the pre-sale system originated in Hong Kong. You know, although Hong Kong has a small land area, the population density of Hong Kong is significantly smaller than that of Singapore. The main reason why Hong Kong people have not yet achieved home ownership is that most of the land in Hong Kong controlled by the four major families in Hong Kong has kept Hong Kong’s housing prices high by controlling the supply. Up to now, Hong Kong is still the city with the highest housing prices in our country.
Recently, as Hong Kong has settled down, the Chief Executive of the Hong Kong Special Administrative Region Carrie Lam said in his 2021 policy address on October 6 that Hong Kong has decided to allocate 300 square kilometers of land, that is, about 300 square kilometers in the north of Hong Kong. In a “metropolitan area” that is easy to travel, an additional 600 hectares of land will be developed for residential and industrial purposes, helping Hong Kong better integrate into the overall development of the country.
300 square meters of kilometers, equivalent to 1/3 of the land area of Hong Kong, such a large-scale land supply, in one fell swoop to break the control of Hong Kong’s land by Hong Kong real estate merchants in the past. If the development of the entire northern metropolitan area of Hong Kong is completed, 920,000 houses will be built to solve the housing problem of 2.5 million people. At the same time, 330,000 sets of public housing will be built to solve the housing problem of the poor. At present, Hong Kong has a population of more than 7 million. The plan to build residential houses with a population of 2.5 to 3 million can almost completely solve the housing problem of Hong Kong residents.
Everyone knows that Hong Kong housing prices are very high. Even the thousand-foot luxury homes where many famous Hong Kong stars live are only more than 90 square meters. In the past, Hong Kong houses also had a share area (the share area was cancelled in 2013). From this we can see how high the housing prices in Hong Kong are. This has led to many ordinary families who can only afford houses of 20 to 30 square meters, and low-income people can only live in caged houses. Square meters of place. The main reason why Hong Kong’s housing prices are so high is that housing resources are in short supply and the demand for housing is in short supply. However, Hong Kong does not lack land resources. For example, the 300-square-kilometer area planned by Hong Kong this time refers to the Yuen Long District and the North District, which are sparsely populated open spaces.
Although Yuen Long and North District are located in Hong Kong, they are not prosperous metropolises. The style of painting is more like an underdeveloped town. The fundamental reason for this phenomenon is uneven development. The development of Hong Kong is a serious focus on the south and the north. The old metropolitan area (southern Hong Kong) gathers 60% of Hong Kong’s population and three-quarters of the jobs. However, the area of Hong Kong itself is not large, and the distance between the north and the south is not far. As long as the development of the northern part of Hong Kong is supported by policies, the problem of the shortage of housing resources in Hong Kong can be solved. Obviously, this kind of development is not in the interests of Hong Kong’s real estate business, because it will hit Hong Kong’s property market to a great extent.
Now, Hong Kong has started the planning and development of Yuen Long and North District, building 920,000 houses in an area of nearly 300 square kilometers, enough for 2.5 million people to live. This means that the housing problem of one-third of Hong Kong’s population will be solved. In addition, this time Hong Kong’s development of about 300 square kilometers of land in the north is not just about building residential, livable and travelable land, but will also open up about 600 hectares of land for residential and industrial purposes. In other words, there will be many industries and tourism in the northern region of Hong Kong in the future, plus the proximity to Shenzhen, this region will also develop better and better in the future.
The population of Hong Kong is so large, and the growth rate is limited. An additional residential area of 300 square kilometers and an increase of 920,000 dwellings will effectively solve the problem of Hong Kong’s current shortage of housing resources. Especially for low-income groups, 330,000 co-operated houses will be built, which can effectively solve the housing problem of low-income groups in Hong Kong, eliminating the need to live in 5 square meters of cages. In terms of housing prices, as the construction of residential and public housing in the northern metropolitan area and the economy and construction of the northern metropolitan area gradually develop, the demand for housing by Hong Kong people has dropped significantly, and the financial properties of the houses will also be greatly reduced. Housing prices have caused a huge impact.
Therefore, after the Chief Executive of the Hong Kong Special Administrative Region Carrie Lam announced this policy on October 6, it quickly caused a shock in the Hong Kong property market, and many people even said that Hong Kong’s housing prices were about to collapse. But for young people in Hong Kong, this policy finally gave them hope of buying a house.
In my opinion, Yuen Long District and North District are closer to Shenzhen, and the future development potential will be greater. If we look at the development speed of Shenzhen, the new metropolitan area of Yuen Long District and North District may become another center of Hong Kong in 10 years. Some people say that Hong Kong has not developed to the north because Hong Kong real estate developers have been secretly obstructing it. If it is true, then real estate businessmen and Hong Kong investors will be dumbfounded now.