Hong Kong: Development Bureau clarifies media report on housing land for private residential developments

On the remark of the Secretary for Development, Mr Paul Chan, at a stand-up session yesterday (December 24) that the annual target of housing land supply capable of producing about 20,000 private residential flats as set out by the Chief Executive could be achieved in 2012-13, a media report today (December 25) said the target could only be achieved by including private development projects or projects subject to land exchange. In response to media enquiries on the subject, the Development Bureau makes the following clarification:

The Chief Executive said in his 2010-11 Policy Address on October 13, 2010, In the past 10 years, the average annual take up rate of first-hand private residential flats was 18,500 units. To ensure a healthy and stable property market, in the next 10 years, on average land needs to be made available annually for some 20,000 private residential flats. I need to stress that this is not a fixed target for residential flat production.Our aim is to build up a sufficiently large land reserve over a period of time to ensure stable land supply for the residential property market. In particular, we need to make available sufficient land for building small and medium residential flats to keep their prices stable.

Announcing the Governments 2011-12 Land Sale Programme at a press conference later on February 24, 2011, the Secretary for Development said, In the coming financial year, MTR Corporation Limited (MTRCL) is going to be an important source of supply of sites for residential developments. The sites at Nam Cheong, Tsuen Wan, Tai Wai, Tin Shui Wai and Tseung Kwan O are expected to provide an estimated 14,600 units. Together with the estimated supply from Urban Renewal Authority (URA) projects, private sector redevelopment and lease modification/land exchange, housing land supply in the coming year could reach a total of about 35,000 units, which is considerably above the working target of 20,000 flats mentioned by the Chief Executive in his 2010-11 Policy Address.

When announcing the 2012-13 Land Sale Programme at a press conference on February 2, 2012, the Secretary for Development also said, In the 2011-12 financial year, through the Governments Land Sale Programme, West Rail property development projects at Nam Cheong and Tsuen Wan West (TW 5), redevelopment projects of the URA, projects subject to lease modification/land exchange and private redevelopment projects not subject to lease modification/land exchange, housing land capable of producing over 20,000 private residential units, exceeding the working target set by the Chief Executive in his 2010-11 Policy Address.

In view of the above, the Governments target of providing housing land capable of producing about 20,000 private residential flats which include the sale of residential sites under Governments Land Sale Programme, property development projects by MTRCL, redevelopment projects of the URA, projects subject to lease modification/land exchange and private redevelopment projects not subject to lease modification/land exchange, is clear and distinct.

December 25th, 2012 @ 09:30pm