SCMP News: Hong Kong's Deficit and the Role of the Private Sector in Land Development
Hong Kong's Land Tender Initiative
Hong Kong's authorities are set to sell a large land parcel next year as part of the ambitious Northern Metropolis initiative, responding to the city’s significant budget deficit of HK$183.9 billion. Secretary for Development Bernadette Linn Hon-ho announced a land-disposal pilot scheme aimed at inviting developers to bid for a site between 10 to 20 hectares to construct private properties and public facilities.
Engaging the Private Sector
The aim is to create a fruitful public-private partnership that minimizes infrastructure costs for the government. This initiative will initiate the tendering process in areas including Hung Shui Kiu, Fanling North, and San Tin, all critical to transforming the area into an economic hub.
Challenges and Prospects
- Linn indicated an expectation for high success in attracting bidders.
- However, falling short may burden the government with additional costs.
- The focus remains on easing housing availability through strategic land use.
As the government considers more plots for tender, adjusting mortgage ratios to 70%, the implications for the property market could be substantial, with up to 6,470 homes potentially supported within the fiscal year's supply target.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.