HONG KONG - Hong Kong will continue to ensure that people are adequately housed by increasing land supply, Chief Executive CY Leung said on Wednesday.

Delivering his second policy address at the Legislative Council here, Leung said that with a high population density, Hong Kong's living condition troubles many Hong Kong residents. More than half of private domestic units have a saleable area of less than 50 square meters.

Leung perceived that serious housing shortage is at the core of the problem and said the government has continued to address the problem through keeping developing new land and increasing housing supply in the short, medium and long terms.

"Our target is to ensure that Hong Kong people are adequately housed and will have better accommodation. We must plan not only for the next few years but also for the next 30 years," Leung said.

According to Leung, including sites identified earlier on, there are about 150 sites that will be rezoned for residential use and will be made available over the next five years to provide about 210,000 additional public and private units.

He noted that the government plans to extend land supply to some new areas, such as New Territories and Hung Shui Kiu.

Leung described The North East New Territories New Development Areas (NDAs) project as essential to Hong Kong's medium and long-term land supply, and he stressed that NDAs will become the major source of housing supply from 2022 onwards.

"The government has made every effort to increase the development intensity and proportion of subsidized housing in these NDAs. They will provide about 60,000 units in total."

In Leung's policy address, New Territories also play an important role in the long-term land supply strategy. Leung said that vast tracts of undeveloped land with development potential locate in the New Territories North.

"The government will commence the Preliminary Feasibility Study on Developing the New Territories North early this year to integrate land use planning with infrastructural development to facilitate optimal land use planning for housing, social and economic developments."

The chief executive said the government is also actively taking forward further studies on reclamation and developing cavern and underground space. Furthermore, the government has also commenced a study to identify districts with potential for developing urban underground space, with a view to increasing usable space and enhancing connectivity in the urban areas.

"Meanwhile, we are preparing a pilot study covering four selected strategic districts, namely Tsim Sha Tsui West, Causeway Bay, Happy Valley and Admiralty/Wan Chai," Leung said.

Besides the increase of land supply, Leung also stressed the importance of curbing external, investment and speculative demands, "these measures have started to deliver results."

In a bid to cool the runaway property prices, the government took a series of measures in February, including doubling stamp duty on properties worth more than HK$2 million?and introducing a lower duty on cheaper homes.

Leung put forward a new target for the next few years - to provide a total of 470,000 units in the coming 10 years, with public housing accounting for 60 percent.

Leung summarized the long-term housing strategy as gradually resolve the shortage problem by increasing overall housing supply, increase subsidized production to meet the needs of the grassroots, increase the supply of subsidized sale flats to provide more home ownership opportunities to the low and middle-income groups and young people.