Land sale includes withdrawn plots

Themis Qi

The eight sites that Financial Secretary Paul Chan Mo-po said will be released for sale in the fiscal year of 2024/25 include six plots that were withdrawn last year and two small sites in Sha Tin, Secretary for Development Bernadette Linn Hon-ho revealed yesterday.

Among them is a prime residential plot in Sha Tin offering 5,690 units. The land program marks the least since the land sale resumption in 2011.

A site near the Sha Tin railway station and blue-chip housing estate City One Shatin will be put up for sale - also the only site - in the coming quarter to provide about 280 units to assess how developers may respond. According to Centaline Property Agency, the site is estimated to have a market value of HK$890 million.

Linn was confident that developers would find the Sha Tin sites attractive since Sha Tin is a well-developed community, drawing reference to 17 bids for a site in the same district in 2022.

She said the government would handle land supply in a prudent manner following the removal of housing curbs.

Last year, six sites were withdrawn after developers became cautious in a high-interest rate environment and macroeconomic uncertainties. Sale of residential sites was suspended this quarter, resulting in incomes from land sales to reach only 23 percent of its annual target.

In addition to the eight government sites, the total supply of 15,000 units as announced by Chan in his budget include 1,200 units from an MTRC development, 2,860 from three Urban Renewal Authority projects and 5,400 units to be redeveloped by private entities.

The total supply for the coming year will hit 15,150 units, higher than the government target of 13,200 flats, Linn said.

Meanwhile, two commercial sites in Kai Tak and Sha Tin and one industrial site in Hung Shui Kiu will be offered in the coming fiscal year, providing 120,000 and 544,000 square meters, respectively.

But no commercial or industrial site will be sold in the quarter through June.

Two large sites in Tung Chung East, currently under development, will be held by the government in the coming fiscal year to avoid too many sites being sold in one district, Linn said.

MTRC received zero bids for Phase 1 of Tung Chung East Station last year as developers found it too expensive to start building a brand-new area amid uncertainties.

The sale of a commercial plot in Queensway Plaza remains suspended as well, Linn said, citing the existing weak economic activities. The government is discussing the renewal with the tenants.

Bids will be accepted for a large industrial site in Yuen Long in mid-March.

The government will also take on-monetary factors into account, including whether the developer can hand over at least 30 percent of the floor area to the authorities to settle the operations on brownfield sites.

While the additional requirements increase the costs for the developers, Linn said she believes the developers will be willing to share social responsibility.