About 2,500 hectares of “spade-ready sites” will build up the land reserve in the next decade (from 2027-28 to 2036-37) and meet the demand for economic development and the community’s housing needs, Chief Executive John Lee Ka-chiu said in the Policy Address 2026.
The move aims to retain control over land supply. Of these sites, it is expected that some 1,400 hectares will be produced in the next five years, including about 1,000 hectares in the Northern Metropolis.
To meet housing demand according to the Long Term Housing Strategy and other land requirements in the next decade, the government will consider the overall situation to determine the pace of land disposal and co-ordinate other land supply sources.
The Development Bureau will reference the Study on Utilisation of Existing Industrial Stock, which is underway, to explore the release of more industrial land in urban areas and make recommendations by the end of the year, including the way forward for the Revitalisation Scheme for Industrial Buildings.
The Development Bureau introduced measures to use newly developed land for urban renewal in August, including the implementation of the Bonus Plot Ratio Pilot Scheme and the cross-district transfer of plot ratio scheme.
Meanwhile, the bureau and the Urban Renewal Authority are conducting a policy review aimed at enabling the URA to pursue redevelopment sustainably, with recommendations for consultation expected to commence in 2027.
The bureau has also introduced various initiatives to lower construction costs, achieving an annual saving of about HK$4 billion for public works projects, which accounts for about 3 percent of the total annual expenditure on public works projects.
Hong Kong’s ranking has dropped to 16th globally this year, falling out of the top 10 for the first time, according to the International Construction Cost Index. Lee said the government will adopt innovative procurement models to enhance Hong Kong’s construction standards and introduce more AI solutions to further lower construction costs.
