Editorial | Stick to commitment on stable Hong Kong land supply
With the Hong Kong property market remaining sluggish there is no need to revive the old land application mechanism
The sluggish property market has made public land sales more difficult. With the way forward anything but clear, and developers and homebuyers showing little appetite for purchases, the government must monitor market sentiment more closely and adjust its policies accordingly in a timely manner.
This is especially important as any step taken by the government may further affect confidence.
Authorities were forced to withdraw tenders for two of five residential plots made available in the 2023-24 financial year after premiums offered by private developers failed to meet the reserve price. This has prompted calls to restore the land application system to avoid similar setbacks in future.
Unlike the current approach, in which the government puts up plots for tender each quarter, the application mechanism abolished in 2013 allowed private developers to apply for sites listed by the government and offer a minimum price. Authorities would then put the land up for sale by public auction or tender.
