Date
19 August 2017
A "coffin room" in North Point has room only for a small bed (right) and Leung Chun-ying gets the feel of such a cubicle in a 2011 tour (inset). Photo: Bloomberg, HKEJ, Apple Daily
A "coffin room" in North Point has room only for a small bed (right) and Leung Chun-ying gets the feel of such a cubicle in a 2011 tour (inset). Photo: Bloomberg, HKEJ, Apple Daily

CY Leung fails to deliver as Hong Kong home prices keep rising

Hong Kong home prices have surged 21 percent since Chief Executive Leung Chun-ying took office on July 1, 2012, suggesting that he has failed to fulfill his promise to curb surging housing costs, Apple Daily reported Friday.

An index of private homes stood at a record 249.8 in June, according to the Rating and Valuation Department. It was up 1.05 percent from May and had risen 2.1 percent since the beginning of the year.

Private home rents were up 0.9 percent from January, according to data from the department.

As home prices continue to rise, rents for extremely small apartments, or the so-called coffins that have room for only one bed, are surging thanks to increasing demand.

A room of 35 square feet in North Point costs as much as HK$2,800 (US$361.25) in rent, the report said.

Leung has said he would solve of the issue of soaring property prices since he was a candidate for Chief Executive. But the situation seems to be getting worse.

The Long Term Housing Strategy Steering Committee set up by him had proposed to build 200,000 public homes in 10 years, but the Audit Commission found only 179,000 units can be supplied owing to land constraint.

This year, only about 24,800 units are expected to be offered, 26 percent fewer than last year and setting a new low in 17 years.

A recent public survey showed 56.6 percent of young people in Hong Kong say they cannot afford such high home prices while 60.6 percent think it will be more difficult to buy homes in the future, the report said.

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