Hong Kong will boost home supply and give preference to local buyers as it seeks to cool housing prices that have surged to become the world's most expensive.

Chief Executive Leung Chun-ying announced a 10-point package yesterday that includes speeding up approval of permits for private project sales, selling public units originally intended for rental, and drafting policies that will give preference to locals.

The measures are the toughest since the government in June last year increased down-payment requirements and aim to address public concern that property prices have become unaffordable after jumping more than 85 percent since the beginning of 2009, fueled partly by buyers from the Chinese mainland.

"These policies will help stabilize prices," said Lee Wee Liat, a Hong Kong-based analyst at BNP Paribas. "They're focusing on flushing out the supply to the market. Developers will try and speed up sales but will be moderate with pricing. The important thing is they're not trying to stifle demand."

Home prices have increased 12 percent this year, bringing the gain to 47 percent since October 2009, when Leung's predecessor Donald Tsang first introduced measures to prevent the formation of an asset bubble. Prices have recovered from a decline in the second half of last year even as the government lowered its growth forecast for 2012 and as the mainland's economy slows down.

"The Hong Kong community has issues with housing," Leung said yesterday. "The administration is a major supplier and major planner. I want to stress we have the responsibility."

The curbs on buying by people outside Hong Kong may be incorporated into land sale agreements, said Leung, adding the measures will be implemented "when necessary."

Buyers from other parts of China made up 36.8 percent of all new sales by value in the first quarter, down from 37.9 percent in the previous three months, said Midland Holdings Ltd.