The Hong Kong government land policy seems to be the lack of land supply it to worsen. All land is owned by the government and at specified times when the offer is published only short. But the policy of the government is not the only factor that determines the supply of land in Hong Kong. When developers to buy land from the government, they are not obliged to build immediately, but they often buy new land to increase their land banks. A handful of large developers have therefore t … Read more »

The Hong Kong government land policy seems to be the lack of land supply it to worsen. All land is owned by the government and at specified times when the offer is published only short. But the policy of the government is not the only factor that determines the supply of land in Hong Kong. When developers to buy land from the government, they are not obliged to build immediately, but they often buy new land to increase their land banks. A handful of large developers have therefore provide the power, land and thus to influence prices. The result is a shortage of properties, high prices and average unit that is smaller than that of other countries.
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from
Ka-Fu Wong,
Carola Ramon-Berjano
Source: University of Hong Kong
17 pages.
Release Date: 14 March 2005. Prod #: HKU387-PDF-ENG
Constraints in land supply: blame government or a developer? HBR case solution