Land supply consultation is just a charade – the Hong Kong government plans to cut a deal with developers
Regina Ip says it’s clear the government plans to let developers build expensive housing in the New Territories, and will seek to pacify the public by sacrificing golf course land and implementing a vacancy tax. The scheme, however, may just inflate prices and worsen inequality
Pitching large numbers of inadequately housed people against 2,000-odd elite golfers, the Fanling golf courses have become a poignant symbol of the glaring disparity between the propertied class and those without.
The administration has stayed mum, but in the same vein as the 2016 planning vision, the consultation pamphlet makes a strong case for reclamation as the most reliable source of land supply (past reclamation accounting for 25 per cent of Hong Kong’s developed area).
Again, it puts forward East Lantau Metropolis – the development of artificial islands in “central waters” (east of Lantau and west of Kau Yi Chau) as providing the greatest source of developable land in the long term.
Watch: Fanling golf course could be used for housing
A new element has emerged, which has been eclipsed by the row over golf land. Tactfully embedded along with other options is the real centrepiece, the proposal for a “public-private partnership”, along the lines of the joint venture between the government and four developers in Sha Tin in the 1970s, which resulted in the development of a major private estate now known as Sha Tin City One.
Clearly cagey about accusations of government-business collusion, the document suggests that “an open, fair and transparent mechanism”, on top of the established land resumption and planning procedures, should be set up to ensure applications are assessed “objectively and consistently”.
Undoubtedly, developers would prefer giving up land for higher-income buyers than for public rental housing applicants. As small units of about 400 square feet in new development areas as remote as Tseung Kwan O are fetching HK$8 million and rising by the day, developers would make a much bigger killing if the government could be persuaded to build “starter homes” instead of public rental housing adjacent to their private residential developments.
To shield the government from accusations of collusion with business, officials would set up some arms-length mechanism to broker a deal with the developers.
A public-private partnership is no bad thing if it unlocks vacant land, but this ruse could backfire if it ends up pushing home prices even higher and channelling more wealth to the developers, while we neglect the neediest in our society. Time will tell.
Regina Ip Lau Suk-yee is a lawmaker and chairwoman of the New People’s Party. She is a member of the Hong Kong Golf Club