Hong Kong developers looking to build on farmland, sites of old buildings as government reduces land available for private flats
- Last year, nine government sites originally earmarked for private flats were reallocated for public flats
- Shift to new options could help developers cut costs
Hong Kong’s major developers are rushing to build more flats on farmland they already own and at urban sites where old buildings can be bought and torn down.
The push comes as the city government is slowing down the amount of land it is making available for developers to buy for private residential projects.
In June 2018, chief executive Carrie Lam Cheng Yuet-ngor announced that nine government sites – three in Kai Tak and six in Anderson Road Quarry – originally earmarked for private housing had been reallocated for the construction of 10,600 public flats.
Since then, developers have been looking for other options, said Vincent Cheung,managing director of Vincorn Consulting and Appraisal. It potentially could save the developers money as well, although they must get approval.
Sun Hung Kai Properties (SHKP) and Henderson Land Development are the two most active developers pursuing alternatives. The action comes as affordable housing has become a front-burner issue, as protesters have turned a spotlight on the problem among a list of their grievances.