Economic Analysis:
Assessing the viability of land supply options proposed by the Task Force on Land
Supply
A consultant team is commissioned by the HKSAR Government for conducting
cost-and-benefit analyses, for the land supply options raised in the Task Force on
Land Supply report, etc., with emphasis on the options deemed controversial by the
public due to their potentially astronomical price tag.
Though the Task Force managed to solicit the opinions of the public towards these land
supply options, these viewpoints (especially the opposing ones towards options that
will involve reclamations such as the Lantau Tomorrow Vision) were based upon the
public’s perceived cost incurred for these options that showed a lack of understanding
of Hong Kong’s housing development process. In order to provide a more scientific
assessment of the viability of these options which facilitates decision-making, the
consultant team will carry out cost-and- benefit analyses for these land supply options.
The consultant team at proposes to the Government to develop a set of benefit-cost
ratios (BCR) for prioritizing the land supply options that can yield the highest social,
economic and environmental benefit with the lowest cost commitments. In doing so,
the study provides a systematic evaluation of the various benefits that these land supply
options can contribute to the community as a whole. The team further proposes the
following steps:
The BCR consists of a Benefit Index (BI) and a Cost Index (CI). The BI comprises a list
of qualitative and quantitative indicators which will be identified by experts interviews,
