SCMP News: Hong Kong Property Leaders on New Land Sales System

Understanding the Shift in Hong Kong's Land Sales System

SCMP news reports that key players in the Hong Kong property sector agree with Secretary for Development Bernadette Linn Hon-ho’s decision not to reinstate the abolished application-based land sales mechanism. This change is seen as crucial for maintaining developers' interest amid challenging market conditions.

The Implications for Property Developers

Stewart Leung Chi-kin, chairman of the Real Estate Developers Association of Hong Kong, stressed that reviving the old system could harm developers' sentiments. Leung noted that many developers are currently focused on completing existing projects, with 14,200 private flats under construction and about 19,000 unsold homes.

Government Stance on Land Supply

Official figures indicate a cautious approach, with the government temporarily halting tenders for two residential plots earlier this year due to low premium offers. Linn reassured the public about the government’s commitment to stable land supply while monitoring market dynamics.

Market Reactions and Future Trends

• Anticipated interest rate cuts in the United States are influencing current market activity.
• The government is contemplating rolling out more residential sites based on positive market feedback.
• Experts suggest that a tender-based system, rather than the old application method, is preferable to gauge market demand effectively.

With eight designated residential sites set for this financial year, it will be vital for stakeholders to stay attuned to evolving market trends and government policies as they impact property prices moving forward.