The six residential sites rolled over from the current financial year are located in Stanley, Kai Tak, Sai Kung, Cheung Sha on Lantau Island, Tung Chung and Tuen Mun. The two new sites are in Siu Lek Yuen in Sha Tin.

Together with other sources, such as urban redevelopment, private development and rail property projects, the potential supply of flats is estimated to reach 15,150 in 2024-25, higher than the government’s annual private housing land supply target of about 13,000 homes.

But for the first quarter of the coming financial year, Linn revealed that the government only planned to put up for sale a 2,300 square metre site in Siu Lek Yuen, which could provide around 280 flats.

Also listed in the 2024-25 programme are two commercial sites in Kai Tak and Shek Mun, providing respectively floor areas of about 80,000 square metres and 40,000 square metres.

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Although Queensway Plaza – first proposed for redevelopment in 2016 – was included in last year’s programme, Linn said it was dropped this time because of the market situation.

“I think people can appreciate that under the prevailing market sentiment … It is a treasure site. We are not prepared to include it in the coming year’s land sale programme,” she said.

She disclosed that discussions were under way with tenants there to renew their leases. “In the case of renewal of tenancy, there is a need to allow a reasonable period [for the tenants to operate],” Linn said.

Financial Secretary Paul Chan Mo-po on Wednesday surprised the market in his budget speech by removing decade-long property curbs with immediate effect.

Linn remained cautious about how well the government’s move to scrap the measures could shore up the market or interest in land sales.

“The removal of the various special stamp duties should have an enlivening effect on the market. But as to the extent that it will affect the interest in the land sale, I think a basket of factors will be in force,” she said.

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“It also depends on the developers’ strategy and their interest in the individual sites … and their own financial position and their own financing status and capability.

“We do not have a crystal ball and we are not able to assess to what extent the removal of the stamp duties will affect the land sale programme. It should help uplift the market a bit.”

An industrial site in Hung Shui Kui in the western New Territories will also be on offer in 2024-25.

The administration estimated the programme this year would realise HK$33 billion in land premium.

The government planned to sell off 12 residential sites, three commercial plots and three areas designated for industrial use in the 2023-24 financial year.

But only five residential plots were put out to tender by February and two were later withdrawn after they failed to reach their reserve price.

The administration expected to raise HK$65.6 billion in land premium fees in the 2023-24 financial year, but the budget statement revealed it only took in HK$19.4 billion – HK$46.2 billion below the target.

Alkan Au, senior director of JLL’s valuation and consultancy department, said he believed the government had intentionally excluded the Queensway Plaza site from the programme so as not to sell it at a low price.

“It can avoid wasting our precious land,” Au said.

He also said the housing market was still weak and that developers would be very careful when bidding for sites.

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“Whether the tenders will face withdrawal or not will depend on the terms and requirements set by the government in the sale,” Au added.

Jason Leung Yeuk-ho, head of land and housing at the Our Hong Kong Foundation think tank, said he believed the government had taken a more pragmatic approach to include some smaller sites in the programme as sentiment remained unclear.

“It seems the government still wants to hold a wait-and-see attitude after the scrapping of the market cooling measures,” Leung said.

Centaline Surveyors director James Cheung King-tat said it was too early to speculate on how keen developers would be on bidding for the sites, given interest rates remained high, and the economy had not fully picked up.

The firm estimated the government could pocket as much as HK$20.75 billion if all eight sites were sold, including HK$7.2 billion for the one in Stanley and for the Kai Tak one, HK$6.2 billion.

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Kathy Lee Yuen-yan, head of research at global property consultancy Colliers, said the two sites in Sha Tin and Tuen Mun could be put on sale later after reviewing the market following the scrapping of the curbs.

Lee called for a more cautious approach when putting land up on sale.

“Land premium [for the current financial year] is only HK$19.4 billion, roughly 22.8 per cent of the HK85 billion previously estimated, a record low since 2008-09,” she said.

“We suggest the government should carefully consider the timing of putting land on sale so as to maximise the land value.”

Additional reporting by Edith Lin