Hong Kong’s government releases smallest allotment of land for homes in five quarters as real estate bull run stumbles
- Two plots of land that can yield 1,350 apartments were released for the second fiscal quarter ending in September, 35.7 per cent less than the previous quarter
- Altogether, four plots valued at a combined HK$152.19 billion were released, including a commercial parcel and a hotel site
Hong Kong released the smallest allotment of land for private residential housing in five quarters,
as the city’s legislative agenda was disrupted by nearly three weeks of sporadic street protests.
Two land plots in Kai Tak and Tuen Mun that can yield 1,350 apartments were released for sale on Friday, along with a commercial parcel and a hotel site valued at a combined HK$152.19 billion (US$19.5 billion), according to the city’s Development Bureau. The yield on the residential plots for the second fiscal quarter ending in September fell by 35.7 per cent from the 2,100 units in the previous three months.
“In the first two quarters, we have met 40 per cent of the [land supply] target, compared with just about 30 per cent in the same period in the last financial year,” said the bureau’s chief Michael Wong.
The slower pace of release puts the administration of Hong Kong’s Chief Executive Carrie Lam Cheng Yuet-ngor on track to miss its target of releasing enough land to build 13,500 flats for the fiscal year that began in April. The current year’s target is already 25 per cent lower than the last fiscal year because of a shift in allocation in favour of public housing.
The smaller-than-expected land release came on the day when the city’s street protests since June 9 around a contentious extradition bill became a talking point between Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe at the G20 summit in Osaka.