Page 8 - 20190415_LandAdvocacy_EN

1 Revision of housing supply target is a zero-sum game

The Government recently changed the public-private ratio of its housing supply target from 60:40 to 70:30 in the Long
Term Housing Strategy (LTHS). However, it did not increase the supply target for the total number of units correspondingly.
The 10-year total housing supply target was reduced from 460,000 units in 2017 to 450,000 units in 2018. With the ratio
adjustment, the average annual private residential supply target has effectively been reduced from 18,000 to 13,500 units.
Housing Crisis Likely to Worsen
While we welcome the Government’s policy of shifting the public-private mix from 60:40 to 70:30,
we believe it would be more advantageous if the total housing supply target’s absolute number is
raised at the same time.
Hanging on the Housing Supply Cliff –
Otherwise, the revision of the LTHS housing supply target is a zero-sum game, as it only rotates the
mix between public and private housing but does not raise the overall target.

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