(Refiles to correct dateline to Hong Kong)

HONG KONG (Reuters) -Hong Kong property developer New World Development said on Thursday it would launch a research project to tackle a chronic housing shortage and sky-high home prices in one of the world’s most expensive property markets.

As private property prices rise in this global financial center, the government reiterates its commitment to affordable housing.

New World announced that a committee was set up to study the long-standing issues in housing. These include unaffordable housing prices and waiting periods for public housing. There is also a shortage of senior-friendly housing as the population grows older.

Adrian Cheng (chief executive at New World) said that Hong Kong’s long-standing housing problem is crucial to its future growth.

We are determined to work creatively with all sides in order to find new solutions that benefit more people.

Since 1997 when Hong Kong was an ex-British colony, making housing affordable is a top priority. However, many people still dream of buying a house.

Reuters published this month that Beijing gave a new mandate for the city’s influential tycoons to help solve its housing crisis.

The report led to shares dropping in Hong Kong’s four largest developers, CK Asset and Henderson Land (OTC) Development, Sun Hung Kai Properties, (SHKP) as well as New World Development. Analysts cited market concerns over potential regulations that might limit their growth.

Later, Carrie Lam of Hong Kong stated that the government would prioritize solving the housing crisis in the ex-British colony and increasing the land supply.

Beijing partly blamed conglomerates’ “monopolistic conduct” for city’s housing woes. The government believes that this was a key factor in the rise in discontent within the government, and the resulting pro-democracy protests.