Sale of nine sites will provide 2,500 new flats

Government to invite tenders for 9 plots in quarter, but they will yield only 2,500 homes

PUBLISHED : Friday, 28 June, 2013, 7:40pm
UPDATED : Saturday, 29 June, 2013, 4:59am

In the face of softening interest by developers, the government plans to sell nine sites for housing between July and September.

However, none of the additional sites is large, and none is for mass residential housing.

The sites can provide a total of 2,500 flats. Between April and June, the government invited tenders for seven sites which can provide 2,400 flats.

"Despite the land price of the Tseung Kwan O site [sold on June 25] being at the low end of market expectations, it is our policy to supply land on a consistent and stable basis," Development Secretary Paul Chan Mo-po said.

"Our policy will not be affected by the tender price for individual sites. We have no intention of delaying the supply of land."

Eight of the new sites for sale are in the New Territories, and the only site on Hong Kong Island, in Wan Chai, can provide just 30 new flats. The largest sites are in Kau To, Sha Tin, and Sheung Shui. However, both have been earmarked for mid- to low-density development.

"The new sites are ready to be released. One is in Kai Tak and, as progress on its development has been more rapid than we expected, we decided to release it this financial year," Chan said.

Forty-six housing sites were originally earmarked for sale in the current financial year, which began in April.

The government announced yesterday it had added six sites to the programme, which could provide a further 1,500 flats.

However, three sites in Shek Mun, Sha Tin, originally on the list, and which would have provided space for 200 new flats, were removed. That reduces the total number of new flats the sites on this year's land sales list can provide to 13,400.

The Shek Mun sites will now be used for public housing. Chan said the government needed them to help it meet its target of building at least 100,000 public housing flats in the five years from 2018.

A commercial site in Lam Lee Street, Kowloon Bay, will also be released for sale in the coming quarter.