New | Small developer Paliburg finds it difficult to replenish land bank
More sites are being released by the government but that doesn't make it easier for a small developer to land a winning bid, says Paliburg chief operating officer Donald Fan Tung
Despite an increase in the number of sites offered for public sale by the government since the Leung Chun-ying administration took office in 2012, Paliburg Holdings executive director and chief operating officer Donald Fan Tung does not feel the company has a higher chance of winning land sites.
Since joining Paliburg in 1981, Fan has witnessed dramatic changes in the city's property market - from a handful of Hong Kong big developers to a more crowded battlefield with the arrival of the mainland's property giants.
It is hard. In the era of Donald Tsang Yam-keung's administration, we did not have a chance to buy land as the government suspended land sales in 2002. We witnessed more sites offered for sale when Leung Chun-ying took office. The government has been offering smaller sites allowing small players to bid. As a result, we see more chances to bid - but not to win.
Competition is very keen. Giant Hong Kong and mainland developers submit bids for both big and small sites.
Meanwhile, the land sale system by tender is not good. When dozens of developers submit bids, you do not know how to set the bidding price. If a giant mainland developer wants to establish a presence in Hong Kong, they will pay a big premium on the market value to win the site. I prefer land sales through auction. We can have an idea what prices your rivals are offering during the bidding process.