SCMP News Highlights: Hong Kong Property Leaders Support Abandoning Old Land Sales System
Understanding the Shift in Hong Kong's Land Sales System
Hong Kong's property sector leaders have rallied behind the government’s decision to maintain the current tender-based land sales system, dismissing the need to reinstate the previous application-based mechanism. Secretary for Development Bernadette Linn Hon-ho emphasized that restoring the abolished approach could dampen developer interest amidst a struggling market.
The Impact of the Current Real Estate Landscape
- Stewart Leung Chi-kin, from the Real Estate Developers Association of Hong Kong, highlighted that:
- Many developers remain cautious with existing projects.
- Over 14,200 flats are under construction, while around 19,000 remain unsold.
The ongoing application-based mechanism introduced in 2013 required developers to bid for sites, but the current tender system adjusts to market demand, promoting stability.
Market Reactions and Future Prospects
- The market is looking ahead to potential interest rate adjustments from the United States.
- Linn assured that the government may limit the release of residential plots depending on market conditions.
- Industry experts, including Lau Chun-kong from Colliers Hong Kong, agree that maintaining the current approach serves better control over land supply.
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.