The Hong Kong government has disputed a report by an American credit rating agency that described the local property market as suffering from oversupply, as officials stressed that the data showed there was strong housing demand.
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Authorities responded on Thursday after S&P Global Ratings published its report that said the government was not aggressively addressing surplus housing supply.
The company also considered the oversupply of office space to be the “most acute” problem facing the sector.
A government spokesman said it disagreed that there was an oversupply of residential properties, citing the 4.5 per cent vacancy rate for private flats as of the end of last year.
“Rents also continued to rise steadily. The data reflected the current strong demand for housing,” the spokesman said.
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He said the residential property market was expected to grow “steadily” this year, considering the general trend of decreasing interest rates, continued economic growth and additional talent arriving in the city.
As for non-residential properties, a recently unveiled policy that put commercial land sales on hold in the coming financial year would “let the market absorb the existing supply”, the spokesman said.