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Kenneth Ko

The depressed property market has forced the Government to revise its land disposal programme by postponing sales of big sites and switching to tenders instead of public auctions.

 It has withheld four sites, including a prime residential lot in Canton Road, Tsim Sha Tsui, originally scheduled for public auction next month, and replaced them with two small lots in Sha Tin.

 Secretary for Planning, Environment and Lands, Bowen Leung Po-wing, said the Government was also considering selling the Canton Road site and two other residential lots by tender instead of public auction.

 He claimed the change was not related to the present property market conditions.

 Mr Leung also announced the withdrawal from sale of the Tamar Basin reclamation site on the Admiralty waterfront, which will now be used for the SAR Government's new headquarters.

 About half the Tamar site - a 142,084 square foot lot - was previously planned for public auction in March for office development.

 Analysts believe the change in land sales is attributable to the property market's doldrums, considering weakened buying interest and the disappointing sales of two residential lots at last Tuesday's auction.

 They said the use of tender instead of public auction was a better sales method, especially for larger sites, in sluggish markets.

 The three sites are expected to be worth billions of dollars and among the most valuable government lots available.

 The 108,500 sq ft site in Canton Road can provide a gross floor area of 800,000 to 970,000 sq ft.

 The other two lots are a 488,680 sq ft residential site in Leighton Hill, Causeway Bay, and a 75,950 sq ft residential plot in Aldrich Bay reclamation area.

 They were originally planned for auction in March and April.

 The Leighton Hill site, suitable for luxury development, has a potential floor area of about 900,000 sq ft.

 The Aldrich Bay site can provide about 680,000 sq ft.

 The next auction, scheduled for February 12, will now see the sale of a 949 sq ft lot and a 44,488 sq ft lot, both for residential use in Sha Tin.

 The Government originally planned to auction the Canton Road site, a 41,872 sq ft residential lot in Tuen Mun, and two multi-storey car park sites in Sai Kung and Yuen Long.

 Director of Lands Bob Pope said the change was not because of the property market condition and indicated other changes were possible for coming land sales.

 However, Mr Leung reiterated the Government would stick to supplying residential land to achieve its housing production target of 85,000 units a year to stabilise prices and make housing more affordable.

 Earlier, the Government chose to sell a 86,100 sq ft hotel site in Ma On Shan by tender which will close for submission on February 6.

 It was originally due for sale at last Tuesday's auction.



Government postpones land sales