First developer withdraws from Hong Kong land sharing scheme amid slow economy
Lawmaker Wendy Hong says scheme’s conditions are not attractive as developers can only break even rather than make a profit
An application made to a scheme designed to boost Hong Kong’s housing supply by tapping into developers’ reserves has been withdrawn for the first time amid a lukewarm response, with experts attributing the move to a sluggish economy.
Brasilia, a subsidiary of Lee On Investment (Holdings), made the withdrawal of its application to the Land Sharing Pilot Scheme for a plot measuring 3.1 hectares (7.7 acres) in Yuen Long involving more than 2,000 homes earlier this year. The government did not announce the withdrawal, which the Post discovered in a review of official documents.
Only six other applications to the scheme have been made.
Under the scheme, owners of private farmland can apply to the government to increase the development density of their sites, but they must set aside at least 70 per cent of the increased floor area for affordable public sector housing.
In return, the government will carry out infrastructure improvements to enhance the development intensity of the private lots and speed up various planning and development approvals.
Lawmaker Wendy Hong Wen, a member of the Legislative Council’s development panel, said that the scheme’s conditions were never attractive, as developers could only break even rather than make a profit, even in a stable economic climate.