Government land supply tumbles to two-year low in third quarter
The supply of land released by the government next quarter will hit a two-year low, and industry observers say it faces increasing difficulties identifying sites for sale as home prices climb to fresh highs.
The supply of land released by the government next quarter will hit a two-year low, and industry observers say it faces increasing difficulties identifying sites for sale as home prices climb to fresh highs.
Six residential sites will be released from now to December, enabling the construction of 1,250 flats. That's the lowest total since land for 1,500 flats was released for tender in the second quarter of 2012. Land made available this quarter should provide 2,100 flats.
"It is not easy for the government to meet its annual flat supply target, as we've hardly seen any new town development in the past 10 years," said surveyor Albert So Chun-hin.
The government has set itself a target of providing sufficient land on which to build 18,800 private flats a year, including those on land being offered by the MTR Corporation and projects by the Urban Renewal Authority (URA).
Secretary for Development Paul Chan Mo-po said railway projects would provide at least an extra 4,600 flats next quarter, with 850 more to come from URA projects.
Together with the land sold for the construction of 10,100 flats in the first half of the financial year, he said sites for a total of 16,800 private flats, or nearly 90 per cent of the target, would be met if MTR and URA projects proceeded as planned.
"We have confidence in meeting the target," he said.
Chan said the MTR would offer its Tin Shui Wai light rail terminus and other packages in Lohas Park in Tseung Kwan O for tender next quarter, while the URA planned to invite tenders for sites in Hai Tan and Kweilin streets in Sham Shui Po.
He suggested the MTR could offer the remaining phases of Lohas Park in smaller lots to allow more developers to participate in bidding for the land.
He rejected suggestions that the government had disposed of land at unreasonably low prices to achieve its housing target, saying the Lands Department had its own professional surveyors to assess land values.
The six residential sites to be offered for tender next quarter are in Beacon Hill, Ma On Shan, Cheung Sha on Lantau Island, Sha Tin, Kwai Chung and Tuen Mun. Of the six, the biggest - at 250,000 sq ft - is on Yiu Sha Road in Whitehead, Ma On Shan. It could yield total gross floor area of 380,000 sq ft. Surveyors estimate it may fetch HK$1.5 billion.
