Wheelock says its proposal to build homes under the land sharing scheme is a ‘win-win’ solution for all
- Private flats to be built under the Land Sharing Pilot Scheme will not necessarily cost more and is a ‘win-win’ solution for all stakeholders, managing director Ricky Wong says
- Wheelock and Henderson submitted a joint proposal last month to build 12,120 flats in Lam Tsuen, Tai Po, with 70 per cent to be set aside for public housing
“The project will only be economically viable when the government carries out infrastructure development like building roads, drainage and sewage systems to support a higher building density,” said Wong.
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Wheelock and Henderson’s plan, also submitted last month, is the biggest submitted under the Land Sharing Pilot Scheme so far. It calls for 12,120 units to be built on 19.3 hectares (2.08 million square feet) of farmland in Lam Tsuen, Tai Po, with 70 per cent or 8,484 units to be set aside for public housing and the remaining 30 per cent, or 3,636 units for private buyers.
Their proposal calls for a plot ratio of 3.3 times, up from 0.4 times, raising the site’s total gross floor area to nearly 6.9 million sq ft.
Wong said that the plot in Lam Tsuen has been left vacant for about 20 years, and it will continue to remain so in the absence of infrastructure. “Now, we have the opportunity to unlock the farmland for housing,” he said, adding that this will not necessarily lead to higher prices of private flats to compensate for the higher ratio that has to be set aside for public housing.
Four major Hong Kong developers – Henderson, SHKP, New World Development and CK Asset Holdings – hold an estimated 100 million sq ft of farmland, which they acquired for between HK$300 and HK$400 per square foot some 20 to 30 years ago, said Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities.
“Even if the four developers donate all their farmland to the government, it will only cost them HK$20 billion, which is an insignificant amount for them,” said Cheng.
Their farmland, once converted into housing at a plot ratio of six times, could supply as many as 400,000 homes if fully utilised, he added.
Wong said the project is awaiting approval from the newly created Land Sharing Office and the Town Planning Board. It also has to negotiate the land premium payable for conversion of the land from farmland to housing.
“If everything goes smoothly, the residents can move in as early as 2027,” he said.
Wong said Wheelock was not viewing the project from a commercial standpoint, noting that it was a win-win solution for the company and the government.
“Developers can develop their farmland and the government can increase supply of public housing,” he said.