(Yicai Global) Oct. 11 -- Housing policy was an important part of Hong Kong Chief Executive Carrie Lam's maiden policy speech today, with challenges facing young homebuyers a particular focus.

Lam first introduced the Starter Homes initiative in an earlier-released policy agenda. The initial thought was that permanent Hong Kong residents who don't own a home in the city would be the only beneficiaries, but the address today confirmed that the policy will include non-permanent residents who have lived in the special administrative region for seven years or more.

"Our initial thought is to incorporate provisions into land leasing to require developers to pursue mixed developments," Lam said. "I.e., design, build and offer for sale a specified number of Starter Homes units in addition to private housing, and sell these to target buyers who meet eligibility criteria set by the government. These will include, among others, Hong Kong residents of seven years or more who do not own property here.

"Their income will fall between the income limits for home ownership scheme applicants and about 30 percent higher than those limits. Based on the prevailing home ownership scheme limits, the upper monthly income limit for the new scheme will be set at no more than HKD34,000 (USD4,356) for single buyers and HKD68,000 for households with two or more members."

Details of the new policy are still being deliberated and will be released around the middle of next year, she added.

Meeting people's housing needs is a top priority in policymaking, Lam said. The government does not have a magic wand, but will commit itself to addressing residents' most pressing needs. Housing is not a simple commodity, but provides the foundation for a harmonious society.

Hong Kong will restructure its housing ladder to rekindle the hopes of families in different income brackets to become homeowners. In the meantime, due attention will be paid to housing supply in a bid to improve people's housing and living conditions by optimizing existing resources, despite the gap in land supplies, Lam added.