Hong Kong Chief Executive Leung Chun-ying delivers his policy address for the year of 2015 in Hong Kong, south China, Jan. 14, 2015. (Xinhua/Lui Siu Wai)

Increasing and expediting land supply is the fundamental solution to resolve the land and housing problems of Hong Kong, Chief Executive Leung Chun-ying said when delivering his policy address on Wednesday.

Leung said the root of many social and economic problems in Hong Kong lies in the shortage of land for development.

There is a serious mismatch between the supply of land and the needs of the society, he said.

"The short supply of land and housing has led to rising property prices and rents," the chief executive said, noting that high property prices and rents have prevented many young people from forming a family or starting their own business.

Leung said what Hong Kong lacks is not land, but land that is developable.

The difference lies in the need for land planning and development, he said, adding that the process of land planning and development takes time.

"We have to take into consideration more and more factors such as the impact on traffic, environment, conservation and even air ventilation in the planning process," he said, as a result, the supply of developable land has decreased or decelerated. Society as a whole must make hard choices, he said.

Planning must reflect the overall interests of Hong Kong and heed the priorities of society's needs, Leung added, saying not only the well-being of individual areas in planning and development, but also the overall housing supply and demand of Hong Kong as a whole should be considered.

In the past two years, the government has stepped up efforts to increase land supply and built up a land reserve by adopting a multi-pronged strategy and various short, medium and long-term measures, he said, adding that the government will relax outdated restrictions and streamline procedures to facilitate land development.