Large-scale land disposal tender set to launch next year

Stacy Shi

The government plans to initiate the tender process for the first two pilot areas designated for large-scale land disposal in the Northern Metropolis during the second half of next year, according to Vic Yau Cheuk-hang, Director of the Northern Metropolis Coordination Office.

Yau expressed confidence in the anticipated success of the tender.

Yau said that the Hung Shui Kiu/Ha Tsuen New Development Area and the Fanling North New Development Area have successfully completed the necessary statutory planning procedures, with land resumption nearing completion.

Tenders for the San Tin Technopole are expected to be issued by 2026 at the earliest, as the land has yet to be resumed.

Yau said that government consultants believe additional pilot areas will be introduced in the Northern Metropolis in the future, establishing a new development model alongside land sales and in-situ land exchange arrangements.

"A site will be designated as a pilot area once it has been resumed and its planning finalized," he said.

He added that involving the private sector can facilitate cost-sharing, reduce the government's initial financial burden and improve cash flow.

Furthermore, this approach can streamline project convergence.

For instance, piling works can be synchronized with the land formation period, potentially expediting the overall process compared to scenarios where contractors begin operations only after the government completes land formation.

However, Yau did not disclose a timeline for launching subsequent pilot areas.

He clarified that this model will not be applied across the entire Northern Metropolis or beyond the area for the time being.

Regarding the tender procedures, Yau indicated that a recent financial assessment showed the current market conditions are still "sound."

The government plans to conduct a market survey to gauge public opinion and adjust the tender requirements accordingly.

He also said the business sector is eager to explore investment opportunities in the area.

With interest rates trending downward, the government remains cautiously optimistic about the area's prospects.

And an environmental impact assessment report is currently in progress to ensure compliance with statutory requirements, Yau added.

stacy.shi@singtaonewscorp.com