Land’s lack is the Achilles’ heel of Hong Kong property market. Government urgently increased the supply of land since last year. Totally 24 plots of residential lands including 8,100 units have been launched in this financial year. These units consumed 60% of the accumulated residential land in Land Application List. Many people worried there will not enough land supplied in next finance year. We found from the statistics of this Newspaper that, government has successfully earned at least 15 plots of residential lands in past two years by land use changing. The lands will possible be added into the list of the next financial year which will start from April this year. The houses supplied will be up to 4,110 units. The estimated value of the land is more than HKD 30 billion. Plus with other potential supply, the available supply of land will be up to enough for 32,203 units. It is estimated that all these lands can meet the demand in future 4 years. So the land supply in short term will be enough.
Chief Governor Leung Chun-ying mentioned to increase land supply by “Ten measures” in medium and short term in Policy Address. Thereinto, the measure that can supply land at the soonest is changing the uses of the lands which are GIC or commercial to release the potential power of the residential land. This Newspaper found from the record of Town Planning Boar and District Council, government has successfully earned 15 plots of residential lands in past two years by this method. The land involved is 14.67 hectares. 3,586,300 sq ft of floor area was supplied. The houses can be built on were up to 4,110 units and the market value is up to HKD 31.15 billion.
Kai Tak can develop 16,000 units of residential houses.
It is worry that, only half of the land that consumed in this finance year and on which 8,100 units can be built (see other section) can be replenished back even all above lands listed in the Land Application List. It need to supply more other lands to deal with the lack of land. Industry estimated government will choose lands in Kai Tak development zone to add to the list. According to data, Kai Tak development zone supplies about 17,000 units in totally. Except the two plots of lands which supply 1,100 units and already listed in Land Application List this financial year, the houses can be put on sale currently are about 16,000 units.
In addition, there are 6 plots of “undecided” lands which located in Kennedy Town and Mount Davis of Sai Wan suitable to be changed into residential lands. They are include incinerator and butchery’s former site in Kennedy Town, public mortuary in Sai Ning St, bus terminal station, temporary amusement park, married polices’ former dormitory in Ka Wai Man Road, cottage area in Mount Davis. These lands can supply 6,553,000 sq ft of floor area and 8,192 units can be built on.
The potential supply which are more than 30,000 units will be enough for the use in future 4 years.
There is still 2,723,100 sq ft of floor area in 54th area of Tung Chung can be supplied. 3,404 units can be built on. Plus with other potential supply, lands at least enough for 12,093 units will be supplied (see the list). The estimated value is up to HKD 78 billion. All these can be listed in next financial year’s Land Application List. In other words, together with the land enough for 4,110 units earned by changing land use in past two years and plus with land enough for about 16,000 units in Kai Tak development zone, the supply of land estimated will be up to enough for 32,203 units. If calculated by lands enough for 8,000 units consumed each financial year, the above lands will meet the demand of about 4 years.
As for the 15 plots of residential lands earned recently, seaside land in Fo Yin Road, Pak Shek Kok, Tai Po among is in the largest scale. This land changed to “residential (B type) 5” use from the former uses of “ leisure”, “rest area” and “ road” in December last year. It is up to 409,032 sq ft. The planed plot ratio is 3.5 times. The total floor area can be built will be up to 1,431,600 sq ft. If calculated by unit area is 800 sq ft, the houses can be supplied will be 1,790 units. The market predicted the floor area sq ft price will be up to HKD 7,500. The estimated value will be up to HKD 10.737 billion. It will highly possible be the “New King Land”.
Temporary housing area in former Lung Ping Rd can build luxury house.
4 plots of downtown lands are also added. 1 plot among is located in current location of Wan Chai Lui Kee Education Services Centre and Wan Chai Polyclinic. It is 26,479 sq ft and will be developed at plot ratio of 7.5 times. Thereinto, on the land which is about 172,100 sq ft and in plot ratio of 6.5 times, they will built residential houses. The estimated number of houses supplied are 285 units. Kowloon Tang also has 3 plots of lands waiting for being launched to the market. Two plots among are located in temporary housing area of former Lung Ping Rd. 376 units can be supplied in total. It is estimated that this area will developed into luxury house in future.
However, government’s land changing is not always going well. The land changing of a seaside land before Marbella in Ma On Shan and the 6th land nearby Classical Garden, Tai Po were stopped because of district people’s objection. Although Planning Department suggested the land of Hong Kong Institute of Vocational Education Lee Wai Lee Campus changed into residential land, but the discussion finally delayed because Hong Kong Baptist University nearby strictly opposed and required to build dormitory having 1,700 beds and a institute of traditional Chinese medicine at the same time.
