Will Hong Kong’s next leader dare to stop selling land to the highest bidder?
Maura Wong says the city has the ability – and the great need – to try a new way of land development that does not use money as the only yardstick. If other cities can innovate, why can’t Hong Kong?
The Hong Kong government has long followed a policy of not selling land cheaply in order to “safeguard” public revenue. This is done primarily through a public auction and tender process that makes money the only determinant of how land should be developed and who gets to develop it.
Such one-dimensional thinking has failed to meet the increasingly complex demands of our society. Awarding land to the highest bidder serves two purposes: revenue maximisation for government coffers, and ease of administration.
However, there are significant hidden costs to this policy. It heavily favours those with deep pockets and who enjoy low costs of capital, contributing to the dominance of large property interests; and, it neglects the non-monetary elements that are important in urban design.