The Hong Kong Chief Executive has delivered her second policy address. Carrie Lam focused on a wide array of economic and social issues, but stressed especially for a greater focus on land usage and housing. CGTN's Mao Dan has more.

"Striving Ahead, Rekindling Hope." The title of Carrie Lam's second Policy Address reflects a proactive approach toward the Special Administrative Region's economic and livelihood issues. Hong Kong's Chief Executive rolled out 240 new initiatives in her 2018 Policy Agenda; among them measures targeting land supply and housing.

CARRIE LAM HONG KONG CHIEF EXECUTIVE "Housing and land supply must be treated as a stand-alone chapter, one that takes precedence over the economy and people's livelihood. We are trying to clearly demonstrate that land supply shortages not only directly leads to a housing shortage, but also affects people's quality of life."

To ensure better housing availability and affordability for families in need, the government has launched a series of policies over the past year to increase supply and optimize existing housing resources. Case in point - the selling prices of subsidized flats will no longer be linked to market prices of private flats. Instead, they will be determined with respect to what buyers can afford.

CARRIE LAM HONG KONG CHIEF EXECUTIVE "First, we will develop land resources in a resolute and persistent manner. Our determination to identify and produce land and build a land reserve will never waver in the face of short-term changes in the economic environment or fluctuations in property prices. Secondly, it is the Government's responsibility to provide decent housing for families in different income brackets. During my term of office, I will increase the ratio of public housing and allocate more land for public housing development. And third, we undertake that 70% of housing units on the Government's newly developed land will be for public housing."

With prices adjusted and a loan-to-value ratio often over 90 percent, monthly payments for subsidized flats will not exceed 40 percent of the buyer's total household income. Now one challenging issue remains for the government: where to get land.

MAO DAN HONG KONG "In her Policy Address, Chief Executive Lam presented several options to increase land supply, including near shore reclamation, land-sharing, development of damaged agricultural sites, and revitalization of industrial buildings. Each of these options poses tremendous challenges. But experts say the government has to find a way to move forward, as Hong Kong's future livelihood, infrastructure, and even the economy hinge on land resources. Mao Dan, CGTN, Hong Kong."