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Relaxed conditions on land exchanges should boost Hong Kong’s Northern Metropolis project and extension of land premium scheme is also welcome.
As property gloom persists, officials remain mindful that income from land put on the market is essential for city.
Those who have benefited most from city’s booming housing market should now ensure push for cut-price flats is a success
- Announcement of delay to artificial islands mega project made amid city’s expected fourth deficit exceeding HK$100 billion in five years
- Chan says government needs to complete feasibility studies and come up with mitigating measures for environmental impact of reclamation
Development chief Bernadette Linn rolls out land sale programme for coming financial year, with eight residential sites estimated to provide 5,690 private flats.
Triangular site between International Financial Centre and Central Ferry Pier No 7 in Central among locations being considered for new museum, government source says.
Development minister Bernadette Linn says past experience suggests developers more interested in smaller plots of land during economic downturn.
Hong Kong’s government has surprised the market by announcing that it will not put any residential or commercial sites up for sale through tender in the last quarter of this financial year, the first time it has done so in 14 years.
Site is at centre of redevelopment plan to build thousands of public flats, with authorities already taking back 32-hectare portion of course in September.
Sino Land, the only bidder in the tender for a plot of land on Lantau Island, has paid nearly 20 per cent less than market expectations as Hong Kong’s housing market continues to languish.
Winnie Ho has defended government decision to remove a housing site in Sheung Shui, saying the location is too remote.
Tepid response for Lantau Island parcel continues a dismal year for government land sales, which as of November achieved only 14.2 per cent of the fiscal-year target of HK$85 billion (US$10.9 billion), with six sites withdrawn, JLL says.
A Sino Land-led consortium won the right to develop a plot in Hong Kong’s Shing Tak Street from the Urban Renewal Authority (URA), after its bid displayed confidence in a highly sought location.
![Construction sites in Kai Tak. The main factors [behind the lack of demand] were “the mounting pressures faced by property developers in large-scale projects,” says Dorothy Chow at Colliers. Photo: Dickson Lee](https://cdn.i-scmp.com/sites/default/files/styles/540x360/public/d8/images/canvas/2023/11/30/f0d4fb4d-735c-466d-9258-bf33f845baa3_548e97df.jpg?itok=Z0s1Zerz&v=1701340510)
The city saw a record six failed land tenders this year as high interest rates, a sluggish economy and complex development requirements diminished developers’ appetite to acquire new plots, according to Colliers.
The Swiss investment bank expects home prices to decline by 10 per cent in 2024 as high interest rates dent demand and an abundance of housing stock boosts supply.
The property magnate and Chinese Estates founder says high interest rates are forcing businesspeople to recalculate their investments and potential returns. ‘It’s better to hold on to the money now.’
MTR Corp has failed to attract any conforming tender to develop a site known as Tung Chung Town Lot No 53, despite many expressions of interest from potential bidders.
Academic predicts government deficit will ‘become worse’ if review of reserve prices for development sites is not carried out.
The Hong Kong government will tender only a single parcel of land in the current quarter, as sales have been scaled down because of poor response and prevailing market conditions.
Hong Kong’s property developers responded strongly to a tender invitation for a plot of land in Kai Tak, after some analysts had expected it to be withdrawn because of the constraints.
The tender for a plot of land in the western New Territories earmarked for almost 2,000 starter homes for middle-class families attracted just one bid on deadline day, as Hong Kong’s property market creaks under the weight of high interest rates and subdued sentiment.
The government’s first land tender of the financial year has fetched the lowest price for Hong Kong Island since June 2002 and is more than 25 per cent lower than prices seen in November.
Winnie Ho predicts small profit margins for builders of subsidised flats will be offset by big demand.
The first government land tender of this financial year ended up attracting far fewer bids than expected as the prospect of further interest rate hikes and new housing supply dimmed the outlook for Hong Kong’s property market.
Hong Kong’s government has defied market expectations by announcing it will sell only two plots of residential land in the second quarter of the financial year – about half the number forecast by some analysts.
A plot of land in the western New Territories earmarked for almost 2,000 starter homes for middle-class Hong Kong families is expected to draw only a handful of low bids as high interest rates subdue market sentiment and the scale of the project deters developers.
Housing minister Winnie Ho says developers could help boost construction capacity and efficiency, as well as unleash private land potential.
