New HK leader's affordable homes plan runs up against wall of Chinese capital

Hong Kong

A PLEDGE by Hong Kong's incoming leader Carrie Lam to make the city's vertiginous property prices more affordable could founder on the bottomless pockets of mainland Chinese developers, who are bidding up the price of land.

Home prices in Hong Kong have jumped 364 per cent since 2003, while the median monthly household income has risen just 61 per cent, pushing home ownership out of reach for many.

While the mass protests that paralysed parts of Hong Kong for 79 days in 2014 were primarily about demands for full democracy from Beijing, many were also motivated by the rising cost of living in the city, and the cost of accommodation in particular.

A typical Hong Kong apartment costs 18.1 times gross annual median income, according to research group Demographia, and the city topped its survey of the world's most expensive places for acco…