The Secretary for Development, Mr Paul Chan, announced today (February 25) the Government's 2016-17 Land Sale Programme.
The 2016-17 Land Sale Programme comprises 29 residential sites capable of providing about 19,200 flats as well as eight commercial/business sites and three hotel sites which can provide about 536,000 square metres of commercial floor area and about 2,100 rooms respectively.
"In the 2016-17 Land Sale Programme, 14 of the 29 residential sites are new sites, while 15 sites are rolled over from the 2015-16 Land Sale Programme. The flat production capacity of the 2016-17 Land Sale Programme represents a record high since 2010. This demonstrates that the Government's determination and the concerned efforts of relevant bureaux and departments to increase housing land supply are bearing fruit," Mr Chan said.
Mr Chan also gave an overview of the private housing land supply situation in 2015-16. By the end of 2015-16, it is estimated that a total of 15 residential sites, with a capacity to produce about 9,260 flats, will be sold. The aggregate private housing land supply from the sale of government sites, railway property development projects, projects of the Urban Renewal Authority (URA), and private redevelopment or development projects is estimated to have a capacity to produce over 20,100 flats, exceeding the annual target of 19,000 flats set for 2015-16. This is the second highest since the Government introduced a target of private housing land supply in 2010.
"Pursuant to the announcement by the Government in December 2015, the total housing supply target for the coming 10 years is 460,000 units, of which 40 per cent is private housing. Correspondingly, the 2016-17 target for private housing land supply from various sources has been adjusted to 18,000 flats," Mr Chan added.
In the next financial year, railway property development projects will continue to contribute to private housing land supply. Package 1 of the West Rail property development project at Kam Sheung Road Station and three projects owned by the MTR Corporation Limited at LOHAS Park, Ho Man Tin Station and Wong Chuk Hang Station are estimated to provide a total of some 4,840 flats. Taking into consideration the land supply from projects of the URA and private redevelopment or development, the total potential private housing land supply in the next financial year is estimated to have a capacity to produce about 28,600 flats, as compared to the aggregate supply target of 18,000 flats for 2016-17.
Mr Chan further explained that the realisation of this forecast of potential housing land supply will depend on factors including the readiness for sale of government sites upon timely completion of relevant procedures/proceedings, the implementation progress of railway property development projects and projects of the URA, and developers' initiative to conclude lease modifications and pursue redevelopment.
For the first quarter of 2016-17, i.e. April to June 2016, the Government will tender seven residential sites, one each in Tsing Yi, Tuen Mun, Sha Tin and Yau Tong, and three in Tai Po, with a total capacity to produce about 4,600 flats.
In the same quarter, the URA plans to invite tenders for joint venture development of the projects at Pine Street/Oak Street in Tai Kok Tsui and Kai Ming Street in Ma Tau Kok. These two projects are capable of providing about 200 flats in total.
The private housing land supply from the above two sources in the first quarter of 2016-17 is estimated to have a capacity to produce about 4,800 flats in total.
Apart from residential sites, the Government will put up for sale in the first quarter of 2016-17 one commercial site and one industrial site, both located in Kwai Chung, to meet the market's keen demand for such land. A minimum gross floor area for warehouse/storage use at the industrial site will be specified under the lease so as to secure the supply of certain floor space for such use.
Mr Chan said that the Government is firmly committed to increasing land supply through a multi-pronged approach.
"The Government will follow the established practice in announcing the quarterly land sale programme in advance to provide transparency and certainty to the market. We may also put up additional sites for sale in the course of a quarter depending on the situation, so as to flexibly respond to changing market conditions," he said.
The 2016-17 Land Sale Programme can be found on the Lands Department's website (http://www.landsd.gov.hk/).
Ends/Thursday, February 25, 2016
Issued at HKT 18:23
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