The Hong Kong government plans to add 16 new sites in its land sale program for the coming fiscal year that begins in April, but none of those plots will be on the main Hong Kong Island, Ming Pao Daily reported.
Going by similar land sale programs in the past few years, the plan for the 2015-16 financial year is somewhat unusual, the paper noted.
In previous years, the government had usually included some sites on Hong Kong Island in the list of new land plots that are put up for auction.
Under the 2015-16 plan, a total of 29 sites will be offered for sale by the government, targeting an annual private housing supply target of 19,000 units.
The New Territories will account for 22 of the sites that will be put up for bidding. Two sites will be from Hong Kong Island, but they are rolled-over properties from the previous year and not new ones.
As new supply in downtown area will be limited, land surveyors expect good demand for the two sites on the table in Hong Kong Island.
One of the sites is located at the rezoning Sheung Shing Street in Kowloon’s Ho Man Tin district. The floor price per square feet is estimated to range between HK$10,000 (US$1,290) and HK$12,000. The other plot is by the Lung Cheung Road close to Wong Tai Sin, and estimated to be worth HK$20,000 per square feet.
As the so-called mini-flats, which are normally around 200 square feet, are becoming more popular in the housing market, Secretary for Development Paul Chan Mo-po has said that there will be no restrictions on the number of units at the sites to be offered for sale in the coming fiscal year.
Lawrence Poon Wing-cheung, senior lecturer at City University’s Department of Architecture and Civil Engineering, said the government is right in removing the restrictive terms on housing supply and enabling developers to tailor the projects based on the market situation.
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