Oh shit, civil_servant called me out for misreading my own post.
Proceed to mouth stuffing. 
Small flat sizes are endemic to large urban centers. If you want a bigger flat, move to the Gold Coast. I know lots of people who prefer a smaller flat downtown though.
I've said repeatedly that Donald Tsang messed up big time and that the next administration was sleeping to realize the impact. However, since 2014, the situation has changed.
Here's what's happening in our area alone.

Beyond that the government has been active to procure land, convert industrial space to residential, and determine ways to find land by considering alternatives. However, none of these strategies are straightforward and take time to develop. While industrial space does provide for larger flats, people are concerned about fire safety and indoor air quality. The same considerations concern brownfield sites, etc. It's not so easy to just say 1-2-3 and it's all done. A good example is a charity in the Gold Coast. They used to own a huge government plot. In recent years, half was taken away to procure land for a private school. Now their half has been sliced again to make room for housing. Initially, the government wanted the whole plot, but unable to find feasible alternative plots for this charity, the government decided to give them more time to stay at half the plot. Through negotiation and brainstorming they were willing to make compromises, while still being able to secure the lot at a later stage. That's the exact reason that it takes time to procure land. One shouldn't just take numbers, then force them through. At the Gold Coast, a major concern is now traffic due to an influx in residents and due to Castle Peak being just one lane. A widening has been proposed, but there is objection due to the destruction of trees along the road. The also planned to put in a cycling track, but residents of a development rejected it saying that since it's in front of their development, cyclist will endanger residents, so back it went to the drawing board. All these things have to be taken into account when doing the planning. There have been public consultations and things are proceeding. Saying that government is just intentionally restricting supply, doesn't do anyone any favors.