Hong Kong’s search for new land sites continues despite sluggish economy and sufficient supply, development chief says

Hong Kong authorities will look to source more land for their reserves despite the economy flagging and the current 7,000 hectares of supply exceeding future expected demand, the development chief has reaffirmed.

“Searching for land is long-term and lasting work, but the fact is the economy is a bit sluggish now,” Secretary for Development Bernadette Linn Hon-ho told a television show on Sunday.

The government last week withdrew a residential site for sale in Tung Chung owing to low bids. It was the second withdrawal of government land this financial year.

The site on reclaimed land covers 10,648 square metres (2.63 acres) and is expected to be sufficient for 414 private flats. Four tenders submitted for the parcel of land came from three developers and a joint venture of two firms.

Linn said it was understandable that developers tended to be “more reserved” when they were influenced by external factors in the market, but she remained optimistic that the economy’s stagnation would end.

“I tell myself and my colleagues that we should take the withdrawals in our stride, as we should not think the status quo will be the future,” Linn said.