Opinion | Land for housing is in short supply and the government is running out of options
- The problem stems from a lack of large-scale land development in the past 20 years. The low proportion of government, large and spade-ready sites is concerning
- To break this vicious circle, long-term projects must be delivered on time, or even ahead of schedule
First, this year’s programme lists only 15 government plots which can only supply 6,000 flats, the lowest in 11 years, and these units make up only 36 per cent of the total potential supply. This is hardly surprising, though, as the proportion of government sites has been declining over the years.
Second, there are few large sites. Of the 15 government plots, only three can supply more than 500 units each. And, third, the proportion of spade-ready sites – those which have been properly zoned for residential use, and sites which have been resumed, cleared and prepared, with adequate provision of infrastructure – is also low.
An increasing number of sites in the programme are still subject to planning or other land administrative procedures and are thus not ready for construction to begin. Six sites which come under the government and railway property development categories have not completed the rezoning process, doubling from only three sites last year.
Many still need clearing, including the government site at Tai Lam (Castle Peak Road in Tuen Mun), which is the largest in the programme and is estimated to be able to supply 1,750 units. Currently, it is still rented to a non-profit organisation on a short-term lease.
Furthermore, there’s the residential development to be located atop the future Tung Chung East Station, which is currently a dusty construction site with reclamation and road work very much ongoing. The station itself is only expected to be completed in 2029. The fact the site has been launched for sale at this early stage reflects the government’s serious lack of options.
The shortage of land supply in Hong Kong is the result of a lack of large-scale land development over the past 20 years. The current stock, including the Kai Tak New Development Area, was developed over 20 years ago. However, apart from the five plots of rezoned commercial land announced this year, all the residential land in Kai Tak has now been sold.
