Hong Kong Land Sales System Controversy: Property Leaders Support Abolishing Application List
Hong Kong Property Leaders Reject Abolished Land Sale Mechanism
In a significant shift within the Hong Kong property sector, leaders have expressed strong support for the decision made by Secretary for Development Bernadette Linn Hon-ho not to reinstate the abolished application list land sale system. This system, which mandated that real estate developers apply to purchase government-listed sites and present a minimum price, was scrapped in 2013.
As of June, data shows a staggering 14,200 private flats are under construction with developers holding an inventory of approximately 19,000 unsold units. Stewart Leung Chi-kin, chairman of the Real Estate Developers Association of Hong Kong, criticized the application mechanism, arguing it could damage developers’ sentiments in a depressed market.
The Current Market Demand
- The government is focused on a tender-based land sale system to better match market demand.
- Bernadette Linn emphasized the importance of maintaining a stable land supply amidst economic uncertainties.
With expectations of an interest rate cut by the United States, the property market remains cautious, further complicating the supply landscape. Lau Chun-kong, of Colliers Hong Kong, echoed support for the current system, highlighting the risks inherent to application-based sales.
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.