Although government actively increases land’s supply currently, but the supply of private house in this year is still less because the volume of land which actually sold was less when government carried out the Land Application List System in early years. Buildings Department announced, Hong Kong only had 1 private residential project including 25 units completed in February. The unit number sharply decreased nearly 88% comparing with 203 units in January and it even is the lowest in 28 months. As for unit which under construction, the number of them maintains at about 851 units which slight increases about 3% by month.
There were only 228 units in first two months which took 1.5% of the target number.
Liu Jia-hui, the lead analyst of Midland expressed, the completed unit quantity sharply decreased to 203 units in January this year after the peak level of more than 3,200 unit in last December. It decreased further by 88% to 25 units in this February which is the lowest in 28 months. There was only 1 private residential project achieved Occupation Permit (project completed) during February. This project is “Wei Feng” which is a single building project in Midlevels West . Synthesizing the completed unit quantity in first 2 months this year, the accumulative completed units only have 228 units. The number decreased 56% comparing with 519 units in same period last year and also is the lowest in same period for 6 years. The actual completed quantity even just took 1.5% of the private house completed quantity of the whole year estimated by government which is 14,928 units. It seems largely deviates from the progress it should have.
Zhou Man-jie, the research department director of Ricacorp Properties expressed, there was a vacuum of government’s land selling from the end of 2007 to the beginning of 2009. What’s worse, the construction quantity from 2009 to 2010 got into very low level because developer decreased the land intake after financial tsunami broke out in 2009. It is estimated that the completed residential houses in 2013 will be only about 13,000 units. Although the number increases 28% comparing with 10,149 units in 2012, but it still very far away from government’s target of supplying 20,000 units yearly.
Construction quantity which is 852 units is the highest in 5 months.
Reviewing the construction quantity, it continuedly rises. There were 4 projects including about 851 units started to be constructed in February. The number slightly rose by 2.8% and is the highest in 5 months. Thereinto, Lok Wo Sha project in Ma On Shan which includes 652 units has the largest scale. Sa Po Road No. 79-81 project in Kowloon City and No. 55-66 project in Nga Tsin Long Road are supply separately 76 units and 67 units. But there were only 1,679 units being constructed in first two months. The quantity still less 37% than 2,685 units which was the quantity in same period last year. According to the data until the end of last year from Transport and Housing Bureau, the land which is approved and ready for construction is capable for 15,000 units. Liu Jia-hui believed, the construction quantity this year may possible be the highest.
In addition, since government carried out the new policy to limit the ratio of construction area and buildable area in April 2011, the number of project which applied to Buildings Department for drawing obviously decreased and maintained at low level these two years. The approved drawing number in February was rarely decreased to one figure number which was 8 cases. It is the lowest number for more than 9 years since 7 cases approved in October 2003.
EMPEROR IHL will rebuild super large store which is 6,560 sq ft in Russell Street.
EMPEROR IHL’s Tsing Fat Street project in Tuen Mun is included among the approved projects. It was approved to build 15 high density houses which have 2 layers (Not include garage and motor room) and 1 club. The residential floor area is about 38,835 sq ft. Same series street shops in No. 22-24, Russell Street, Causeway Bay were approved to be rebuilt into a super large shop which will be 1 layer and in area of 6,560 sq ft. First Group’s house site in No. 9, Tat Chee Avenue, Kowloon Tong which bought at HKD 150 million in August last year was approved to be built into 1 villa in 3 layers with floor area of about 11,523 sq ft.
As for New World’s Tong Yan San Tsuen phase 2 which is the same series, it was approved to be largely revised. The total floor area is 85,500 sq ft which will be the same. The overall arrangement will be changed. According to the old scheme, it can build 20 buildings in 3 layers, 4 floor type buildings in 4 layers and so on . While in the new scheme, the number of low floor building will decrease to 11, number of floor type building will decrease to 5 from 4 and 1 layer of club will be changed into 2 layers.
