Rise In House Prices Is Worrying, Says Carrie Lam

Chief Executive Carrie Lam on Thursday said she is worried about the rise in property prices again, saying affordability is a big issue for the Hong Kong people.

"Since last August we have seen a correction, up to about 9 to 10 percent. But from January this year ... the downward trend seems to have ceased and we are seeing some upward movements again. To put it simply, I am worried," Lam told an investor's forum.

The CE said the demand for homes is high because as an open society and free market economy, Hong Kong allows people, investors and talent to come in. "The only way is to increase the government's role [in housing]," Lam said.

She said she has done this by de-linking the price of subsidised homes from private property prices, allocating more land for public housing and introducing projects such as the Starter homes. But even these are not enough, the CE said.

"The shortage is very, very acute. So the solution lies in finding land to build on and after a long period of public engagement, the task force on land supply has submitted their report to me. I have accepted wholesale, every recommendation in their report. So we have a multi-pronged approach to provide land," said Lam.

She said the longer-term solution is reclamation and she will continue to push her Lantau Tomorrow project to find more land.