Hong Kong’sUrban Renewal Authorityis planning to deploy a record HK$100 billion ($13 billion) to redevelop old buildings as the city strives to increase housing supply.
The proposed sum, the largest in the authority’s history, includes the acquisition and construction costs for property redevelopment in the next five years, according to a document provided by the authority. It expects to provide 18,000 new homes with the budget.
The ambitious plan could help alleviate some of the pressure on the government to boost home supply. Housing issues are a priority for the local government. Ranked as theleast affordablein the world, the property market has frustrated the younger generation in the city who have a hard time buying a home.
The city’s home prices have been increasing in the past few months to just 2.5% lower than the record set in 2019.
Established in 2001, the URA is a public body that redevelops old properties in Hong Kong.