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Government announces quarterly land sale programme for January to March 2016

The Government announced today (December 30) the quarterly land sale programme for the fourth quarter of 2015-16, i.e. January to March 2016. The Government will sell by tender four residential sites in Stanley, Tuen Mun, Ho Man Tin and Sha Tin, with a total capacity to produce about 1,550 flats.

The MTR Corporation Limited (MTRCL) plans to tender Package 10 of LOHAS Park in the same quarter, with an estimated capacity to provide about 1,100 flats.

"The private housing land supply in the fourth quarter of 2015-16 from government land sale and a railway property development project is thus estimated to have a capacity to produce about 2,650 flats in total," the Secretary for Development, Mr Paul Chan, said.

Mr Chan reviewed the private housing land supply situation in 2015-16. When announcing the 2015-16 Land Sale Programme in February this year, the Government said that, based on the total housing supply target of 480,000 units for the 10-year period from 2015-16 to 2024-25 as promulgated in the Long Term Housing Strategy, of which 40 per cent is for private housing, the target in 2015-16 is to provide private housing land capable of producing about 19,000 flats.

The 2015-16 Land Sale Programme announced in February 2015 comprises 29 residential sites, capable of providing about 16,000 flats. In June this year, the Government added two residential sites to the 2015-16 Land Sale Programme. After the adjustment, there are 31 residential sites in the 2015-16 Land Sale Programme, with a total capacity to provide about 18,600 flats.

Mr Chan said, "In the first and second quarters of 2015-16, the Government sold eight residential sites in the 2015-16 Land Sale Programme capable of providing about 5,020 flats. In September 2015, four residential sites capable of providing about 2,850 flats were announced for sale in the third quarter of 2015-16. In early December 2015, two residential sites with a capacity to provide about 960 flats were added to the land sale programme for the third quarter of 2015-16. Since a residential site at Lai Chi Shan, Tai Po, which is being tendered with a deferred closing date involves judicial review and interim injunction proceedings, the tender schedule of the two sites on Lo Fai Road, Tai Po, which fall on the same Outline Zoning Plan is to be fixed later. Furthermore, the tender of a residential site in Tsing Yi in the second quarter of 2015-16 was unsuccessful. As such, these three sites are not included in the forecast of the aggregate private housing land supply in 2015-16. Taking into account the four residential sites to be put up for sale in the next quarter, a total of 16 sites were sold or will be put up for sale in 2015-16, capable of providing about 9,720 flats. This is the second highest flat production capacity of government land sale sites since the Government-initiated sale mechanism was introduced in 2010-11."

The implementation of railway property development projects is on schedule. The MTRCL successfully tendered LOHAS Park Package 7 (about 1,250 flats) and Package 8 (about 1,430 flats) in June and October 2015 respectively. The tender of LOHAS Park Package 9 (about 1,780 flats) closed on December 28, 2015. In addition, the Government's West Rail property development project at Yuen Long Station (about 1,880 flats) was successfully tendered in August 2015. Including LOHAS Park Package 10 to be tendered in the coming quarter, the five railway property development projects have a capacity to provide about 7,440 flats in total.

Concerning projects of the Urban Renewal Authority (URA), after review, the URA has decided to retain the project on Ma Tau Wai Road/Chun Tin Street for private housing development. The Government will therefore include it in the private housing land supply of 2015-16. The URA awarded the tender for the joint venture development of the Pak Tai Street/San Shan Road project in Ma Tau Kok, the Sai Wan Ho Street project in Shau Kei Wan and the Hai Tan Street project in Sham Shui Po in July, September and December 2015 respectively. These three projects could provide about 350 flats in total. The URA is inviting tenders for the development of the Kowloon City Road/Sheung Heung Road project in Ma Tau Kok (about 216 flats) until January 12, 2016. The above five URA projects are estimated to provide about 1,060 flats. This is on par with the annual average flat production capacity of the URA projects in the past 10 years or so.

As at November 2015, private development and redevelopment projects were estimated to provide a total of about 2,070 flats.

"Combining all of the above, it is estimated that private housing land supply in 2015-16 has a total capacity of producing about 20,300 flats, exceeding the 2015-16 private housing land supply target of 19,000 flats. This demonstrates the efforts of relevant departments, the Government's flexible response to market changes and challenges, and its resolve in steadily increasing housing land supply," Mr Chan said.

In the remaining months of the financial year of 2015-16, the land supply from private development and redevelopment projects may further increase. The relevant figures will be updated when the Government announces its quarterly Land Sale Programmes in 2016.

As for commercial land supply, the Government will sell by tender a business site in Kwai Chung (about 5,400 square metres of gross floor area) in the fourth quarter of 2015-16 to meet the market demand for such sites.

Looking back at the first three quarters of 2015-16, two business sites in Sha Tin and Yuen Long were sold, providing about 62,400 square metres of gross floor area in total.

Apart from land sale, the Government has been increasing the supply of commercial floor space through multiple channels. The Government Property Agency is inviting tenders for the government property at Trade and Industry Department Tower in Mong Kok, providing about 26,400 square metres of gross floor area.

"In order to flexibly respond to different situations and challenges, we will closely monitor the market situation, and, subject to the progress of rezoning and other work, the Government may put up additional sites for sale within the fourth quarter of 2015-16 if deemed appropriate, so as to ensure that the target of land supply can be achieved. The Government will spare no efforts to identify additional suitable sites for development. The objective is to provide a steady, sustained land supply to the market to cater for the community's demand for private housing, commercial and business sites," Mr Chan said.

The list of the sites to be tendered in January to March 2016 is attached. The Lands Department will separately announce the detailed land sale arrangements before individual sites are tendered.

Ends/Wednesday, December 30, 2015
Issued at HKT 19:30

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