An increase in land transactions from Northern Metropolis projects and recovering market confidence have driven a growth in Hong Kong’s land premium revenue, analysts said.
Hong Kong’s land premium jumped to HK$2.68 billion in the third quarter, a 25-fold jump from HK$103 million in the previous quarter and the highest in eight quarters, according to data from the Lands Department.
The surge was mainly fueled by Northern Metropolis projects, Alvin Lam Tsz-pun, director of Midland Surveyors, adding that whether the trend continues will depend on the pace of land resumption. He noted that improving sentiment and faster inventory clearance in recent months have helped restore developer confidence.
For the first nine months, total land premium rose 5 percent year-on-year to HK$4.85 billion, with more than 40 percent contributed by projects in the Northern Metropolis.
Development Secretary Bernadette Linn Hon-ho earlier said eight projects involving about 4,570 residential units could complete land premium procedures this quarter, maintaining a relatively high level for a second straight quarter.
For the first half of the fiscal year from April to September, total income from land premiums and land sales reached HK$3.87 billion, or 18 percent of the government’s full-year target of HK$21 billion.
Lam said the government has already achieved over 90 percent of its 2025 private land supply goal, making it likely to hit the target by year-end, though meeting the annual land revenue target remains challenging.
STAFF REPORTER
