Mainland developers are considering taking part in the Land Sharing Pilot Scheme now that its application period has been extended.
It is said that consultations are continuing with the Development Bureau.
Both sides remain in close communication over the scheme, including over the technical evaluation of projects and the development parameters.
Market observers expect mainland developers to apply to join the scheme if the consultation goes smoothly and believe more developers will jump on the bandwagon with the extension of the application deadline.
Developers are taking the opportunity offered by a fall in land prices to top up their land banks for future use, said Knight Frank Greater China senior director Cyrus Fong.
The application period has been extended by one year to May 5, 2024, with its existing framework and requirements unchanged, the Development Bureau said last month.
With the extension, one more application has been received, making it a total of six by last month.
The latest application is from Gainful Sky Hong Kong, whose parent company is Southeast Asia Properties and Finance.
The application is for a place on Lei Muk Road, Kwai Chung, the site of the former Salvation Army Kwai Chung Girls' Home.
The application for the site - zoned as "Other Specified Uses" annotated "Buildings with Historical and Architectural Interests Preserved for Social Welfare Facility Use" and "Open Space" - is the first to involve historic buildings.
If approved, the site, about 1.2 hectares, can provide 912 subsidized and 300 private flats.
However, it provides the least units than sites approved in 2020, with expectations that it can accommodate only 3,394 people in total.
The project can start its statutory procedures such as planning and road works in 2024 to 2025, and the land leveling for the public housing is expected to finish in 2028 to 2029, says the Development Bureau.
The pilot scheme first accepted applications on May 6, 2020, aiming to expedite the development of public and private housing.
The scheme complements the government's plans to use private land for specific public uses.
The three applications acquired, supported and endorsed in principle, are in Yuen Long and Tai Po and can provide a total of 21,600 housing units, including 15,100 public housing units.
Separately, Ladder Dundas, a Ginza-styled commercial building at 575 Nathan Road, Mong Kok, has sold three floors to a mainland financial group.
The 18th floor fetched HK$28.6 million, the 19th HK$28.89 million, and the 20th HK$29.18 million, making for a total of HK$86.67 million.
The same buyer bought the first floor of the building last year for HK$46.28 million.
After the border opened, Ginza-style commercial buildings have been active. Mainland financial groups are inquiring about prices and entering the market, says Salome Mak, regional sales director of Centaline Property.
She said when cheaper-priced properties sell out, prices are expected to rise.
