Editorial | A meeting of minds in Tung Chung land sale
Hong Kong government’s revision of conditions on developers for final site put up for tender in 2024-25 financial could help set a positive tone going forward
The first land sale of 2025 will be closely watched for signs of market sentiment and expectations. It will also be the last sale of the current financial year ending in March, in which revenue from land sales so far is about HK$4 billion, compared with the financial secretary’s estimate of HK$33 billion in the budget speech last February.
The government’s offer of a single residential plot in the Tung Chung extension area marks the second attempt to sell the 37,268 square metre parcel after it was withdrawn from sale in 2023 because bids failed to reach the reserve price.
What also sets the next attempt apart is that the government has adopted a practical approach by revising the site requirements to align with cautious bidding sentiment amid high interest rates.
Specifically, in the past, in the case of the sale of a relatively large piece of land, the government would usually attach conditions that added to development costs.
These could include provisions to enhance public enjoyment and convenience, such as a park, or a bridge to connect with transport. This time they have been omitted.
Given market conditions this is very pragmatic since developers, when preparing bids, have to calculate the costs of all facilities as well as the buildings.
