Developers and builders push for mega projects

Ayra Wang

The real estate and construction sector is urging the government not to postpone the huge Northern Metropolis and Kau Yi Chau Artificial Islands projects despite the financial deficit and falling housing prices - just days before the budget on Wednesday.

Surveyor and Legislative Council member Tony Tse Wai-chuen said there is a need to develop these projects concurrently with efforts to boost the economy.

He said "there is potential for the Kau Yi Chau project to increase the government's land reserve, even though it involves significant costs."

Tse suggested financing or issuing bonds in phases could help cover costs.

However, he also acknowledged the importance of focusing on the economic recovery and restoring market confidence in the short term.

Legco member Louis Loong Hon-biu echoed Tse's sentiments.

"The government should consider prioritizing the projects as financial reserves may not be sufficient to support both simultaneously," he said.

For Loong, the priority should be on the Northern Metropolis, citing the maturity of its plan and the potential for San Tin Technopole to boost the innovation and technology industry.

Stewart Leung Chi-kin, executive committee chairman of the Real Estate Developers Association, said there is a need for sufficient land reserves in Northern Metropolis to meet market demands.

He added there is a significant financial investment required to carry out the Kau Yi Chau Artificial Islands project and suggested that the government proceed with the project only after securing financing.

Leung called for a reduction in existing cooling measures in the property market to prevent a further decline in prices, saying that the real estate sector alone cannot save the economy.

He said "removing these measures would stabilize the market rather than cause a surge in property prices."

For the financial sector, the hope is for improved tax policies to attract new funds to Hong Kong.

Chan Chun-ying, who represents the sector in Legco, proposed a reduction in the stock stamp duty in the upcoming budget as a means of demonstrating the government's support for the market and to instill confidence in local and overseas investors.

"A reduction in the stock stamp duty will not bring an immediate recovery in the stock market, but it will show the government's attitude to support the market and give confidence to both local and overseas investors to invest in the Hong Kong market," Chan said.

However, Mike Wong Ming-wai, the chief executive of the Chamber of Hong Kong Listed Companies, cast doubts on the effectiveness of a reduction of the stock stamp duty if the market continues to perform poorly.

Wong said the government should focus on attracting investments from the Middle East to stimulate the market.