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Government announces quarterly land sale programme for January to March 2017

The Government announced today (December 29) the quarterly land sale programme for the fourth quarter of 2016-17, i.e. January to March 2017.
 
"The private housing land supply in the fourth quarter of 2016-17 from government land sales, railway property development projects and a project of the Urban Renewal Authority (URA) is estimated to have a capacity to produce about 3,610 flats in total," the Secretary for Development, Mr Paul Chan, said.
 
In the fourth quarter of 2016-17, the Government will sell by tender two residential sites in Sha Tin and Kai Tak respectively, with a total capacity to produce about 1,040 flats.  
 
The MTR Corporation Limited (MTRCL) is planning to tender in the same quarter the first package of two property development projects, namely West Rail Kam Sheung Road Station (about 1,650 flats) and Package 1 of Wong Chuk Hang Station (about 800 flats), with an estimated capacity to provide about 2,450 flats. The tender of Package 1 of the Wong Chuk Hang Station project was originally scheduled for the third quarter of 2016-17. In view of the commissioning of the South Island Line only on December 28, 2016, the tender of this project is slightly postponed to January 2017 and will be included in the supply for the fourth quarter of 2016-17.
 
The URA plans to tender a project at Peel Street/Graham Street, Central, in the next quarter. This project can provide about 116 flats.
 
Mr Chan reviewed the private housing land supply situation in 2016-17. The 2016-17 Land Sale Programme announced in February 2016 comprises 29 residential sites, capable of providing about 19,200 flats. In June this year, the Government added a residential site in Tuen Mun (about 320 flats) to the 2016-17 Land Sale Programme. After the adjustment, there are 30 residential sites in the 2016-17 Land Sale Programme, with a total capacity to provide about 19,520 flats.
 
Mr Chan said, "Taking into account the two residential sites to be put up for sale in the next quarter, a total of 21 sites were sold or will be put up for sale in 2016-17, capable of providing about 13,280 flats in total. This is the highest flat production capacity of government land sale sites since the Government-initiated sale mechanism was introduced in 2010-11." Mr Chan said that the Government will roll over other available sites in the 2016-17 Land Sale Programme to that of the next financial year.
 
For railway property development projects, the MTRCL successfully tendered Package 1 of the Ho Man Tin Station project (about 1,000 flats).  Including the Kam Sheung Road Station and Wong Chuk Hang Station projects to be tendered in the coming quarter, the three railway property development projects have a capacity to provide about 3,450 flats in total.
 
On another front, the URA awarded the tender for the projects on Pine Street/Oak Street, Tai Kok Tsui, and Kowloon Road/Kiu Yam Street, Sham Shui Po, in June and October 2016 respectively, providing about 195 flats. Together with the Peel Street/Graham Street project in Central to be tendered next quarter, the above three URA projects are estimated to provide about 310 flats.
 
As at November 2016, private development or redevelopment projects are estimated to provide a total of about 2,420 flats.
 
"Combining all the above, it is estimated that private housing land supply in 2016-17 has a total capacity of producing about 19,460 flats, exceeding the 2016-17 private housing land supply target of 18,000 flats by about 8 per cent. I would like to take this opportunity to express my gratitude to colleagues from the Development Bureau and relevant departments for their concerted efforts and hard work, as well as to the Chief Executive for his strong support for our work," Mr Chan said.
 
Mr Chan remarked that although the private housing land supply from government land sale in the next quarter is less than previous quarters, this should not be misinterpreted as lack of residential sites for sale or the Government reducing land supply. Rather, it reflects the intention of the Government to observe the supply target, as exceeding the target too much may affect the credibility and certainty of the annual supply target set by the Government. In fact, with the 3,610 flats from the next quarter, the private housing land supply in 2016-17 is expected to exceed the annual target of 18,000 flats by 1,460 flats. Mr Chan further disclosed that the private housing land supply from various sources in the first quarter of the next financial year to be announced in February 2017 would be capable of providing over 5,000 flats.
               
On commercial land supply, the Government will sell by tender in the fourth quarter of 2016-17 three commercial sites in Central, Cheung Sha Wan and Kai Tak respectively, which together have a total capacity to provide about 270,000 square metres of gross floor area, to meet the market demand for prime commercial sites and promote the economic development of Hong Kong.
 
An industrial site in Kwai Chung will be added to the 2016-17 Land Sale Programme and put up for sale in the next quarter. This site is capable of providing about 17,000 square metres of gross floor area.
 
For the whole financial year of 2016-17, seven commercial/business sites were sold/will be put up for sale, providing about 502,900 square metres of gross floor area in total. This is not only a record high since the Government-initiated sale mechanism was introduced in 2010-11, but also exceeds the total gross floor area of the commercial/business sites sold by the Government in the previous four financial years (i.e. 2012-13 to 2015-16). In addition, two industrial sites providing about 52,000 square metres of gross floor area were sold/will be put up for sale in 2016-17.
 
"In line with past practice, the Government may, subject to market conditions as well as the progress of rezoning and other work, put up additional sites for sale within the fourth quarter of 2016-17. The Government will spare no effort in identifying additional suitable sites for development and closely monitor the market situation. The objective is to meet the supply target through steady and sustained land supply to the market to cater for the community's demand for private housing and space for economic uses," Mr Chan said.
 
The list of the sites to be tendered in January to March 2017 is attached.  The Lands Department will separately announce the detailed land sale arrangements before individual sites are tendered.

Ends/Thursday, December 29, 2016
Issued at HKT 18:42

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