Concrete Analysis | Lands Department controls the property market, not developers
Lands Department's discretionary power over land sales is what has slowed development. The system is unfair and bad for the economy
The government has announced that it will release some sites for the development of residential projects for restricted sale to Hong Kong residents only, with details of terms and conditions yet to be announced.
It is easy to criticise the new policy and say it will have little impact on cooling prices or increasing the supply of much-needed apartments.
But critics ought to be aware that getting a development off the ground and finishing it is a lot more complex than one may think.
Government land sale conditions come in different forms. There are development parameters setting out gross floor area (GFA), uses, height, and other requirements.
In addition, approval is required from the Lands Department for detailed design elements, as well from the Buildings Department for matters covered by the Buildings Ordinance.
These detailed design elements include but are not limited to design and disposition, building setback (from the street), provision of sales offices, recreational facilities, landscaping, car parking provision and layout, and many more.