Hong Kong: Land sale to bring 3,610 flats

Hong Kong: Land sale to bring 3,610 flats

Private housing land supply for January to March will provide 3,610 flats, Secretary for Development Paul Chan announced today.

Meeting the media on the land sale plan for the coming three months, Mr Chan said the Government will sell two residential sites in Sha Tin and Kai Tak by tender in the January-March quarter, which can provide about 1,040 flats.

The MTR Corporation’s Kam Sheung Road and Wong Chuk Hang projects will yield 2,450 flats in the quarter.

The Urban Renewal Authority’s redevelopment project in Central will provide 116 flats.

Mr Chan said, after taking into account the 3,600 units in the coming quarter, the land supply for the 2016-17 financial year will be 19,460 units, 8% above the target of 18,000.

Within this total, 13,280 units will be provided by the sale of 21 sites. Three MTR Corporation projects will yield 3,450 flats. Three Urban Renewal Authority redevelopment projects will provide 310 units. Private development or redevelopment projects will yield 2,420 units.

Mr Chan said the total land supply of 3,600 flats in the coming quarter is lower than that in the previous three quarters.

“This is a deliberate decision. We have to be careful not to exceed the target too much. Otherwise the market may have doubt as to the credibility of the annual target announced by the Government.”

When asked whether flat size restrictions should be imposed to deter developers from selling mini-flats, Mr Chan said it is not appropriate to impose restrictions at the moment.

“Because when we sell the land and when this land turns into residential units, there is a time gap of several years. The market can change very quickly in the intervening years.

“So perhaps we should at this stage leave the flexibility to the market so that developers can respond to the needs of the market appropriately.”

For commercial and industrial land supply, the Government will sell three business sites by tender in the coming quarter in Central, Cheung Sha Wan and Kai Tak with a total gross floor area of 270,000 sq m, and an industrial site in Kwai Chung with a gross floor area of about 17,000 sq m.

Click here for the land sale plan.

Photo Caption: Secretary for Development Paul Chan.

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