Young Chinese immigrants fuelling HK's home shortage

Hong Kong

AS Hong Kong struggles with the world's priciest housing market, a shortage in supply is being exacerbated by mainland Chinese students who stay on after graduating. The graduates may help boost housing demand by 4,000 units a year in the medium term, says Nicole Wong, CLSA regional head of property research in Hong Kong. That compares with 25,500 private residential units completed in 2016.

Government officials are trying to limit risks to the financial system and the economy from rocketing prices, while seeking to address a yawning affordability gap that has prevented young residents from getting on the property ladder. In rolling out cooling measures, the Hong Kong Monetary Authority has targeted groups including mortgage borrowers whose income is "mainly derived from outside Hong Kong".