Hong Kong's new home supply to hit record high in next 4 years: govt

[HONG KONG] Hong Kong can expect a record number of new homes to be built in the next four years, the government said on Friday, as it tries to rein in prices in one of the world's most expensive markets.

The number of flats forecast for completion in the next four years will reach 74,000 units, the city's Transport and Housing Bureau said.

Centaline Property Agency said it would be the highest on record.

Private home completions for the first three quarters of 2014 reached 12,200 units, about 47 per cent higher than the total of last year, the authority said.

In April, the government said the number of private home completions this year will reach a 10-year high.

Despite a series of government measures to curb prices, such as higher stamp duties and mortgage restrictions, property prices hovered around their record highs during the past few months as strong demand from end-users boosted sales for small- and medium-sized units.

Hong Kong home prices have surged more than 120 per cent since 2008 due to low interest rates, supply shortage and flush liquidity.

REUTERS