The supply targets of Government was 20,000 units per year,but haven't been reached the standard in the past two years,there are lack of supply on projects which with premium,also some of the rail projects have appeared a situation of 'failed the bid',so it the unstable supply of land become a " fatal ." A new phase in the policy address to arbitration mechanism to resolve the issue of premium,it is expected to make the above-mentioned problems can be solved,so that the land supply can be more stable and efficient,but also can achieve the goal of increasing the supply.Sun Hung Kai Properties co-chairman Kwok Ben Kong expected,if the arbitration mechanism implemented,there will have an additional 4,000 to 5,000 units increased on the land supply by year.He also refers to the policy address have cleared the land policy,which can stable the proerty price.■ Hong Kong Wenhui newspaper reporter Ngan Lun Lok
When Kwok Ben Kong attended the " charity marathon " campaign yesterday,described that the arbitration mechanism is a "breakthrough".He believes that the arbitration mechanism will help increasing the opportunity of developing an agreement on land price between the developer and the government,the most important thing is to find the amount of premium which is acceptable to both sides.Also refers to the reason why the developers have slowed down the sales of new housing estates in the past two years,mainly due to the fact that failure to reach agreement on the premium.If the arbitration mechanism which have mentioned in the policy address implement,also achieved the government's expectation,and it can accelerate the premium program,so the private land supply " will speed up a lot,it is believed that there will have more than four to five thousand supply by year".
Five projects of SHKP may launch out the trial
Under the mechanism,except for the applications of agricultural lands changed into residential-use,the applications of factory changed into office and hotel will also increase,Kwok is expected the developers will accelerate the sales of residential supply.He also mentioned that there will be four to five projects of SHKP will consider using the arbitration mechanisms,including the factory changed into offices,hotels and residences etc.
In fact,if referred to the situation of land supply which launched by the government in the past three years,may found out that although the government threatened to supply 20,000 units annually,but has not been reached yet,of which too few projects with land price is one of the reasons.
Successful cases have 80% less than expected
Calculation of 2012-13,the annual premium projects only contributed 700 units of supply,recorded 80% less than the expected supply of 3,300 units.The Lands Department has announced the income of land price from April to December last year only recorded HKD $3.19 ten billion yesterday,fell 73.5% over the 2012-13 fiscal year of HKD $1.2076 hundred billion,it can be expected that the units involved in the projects which with the land price over the past year may less than 700 units,certainly less than 3,500 units which expected in the earlier of last year.If the government paid the land price finally,the number of units which will provide annually can be increased to a maximum of 5,000 units such as Kwok Ben Kong mentioned,which accounted 25% of the supply of 20,000 units per year,except for increased the supply,the Government may also make it easier to reach the annual supply targets. To say the least,even if the government need to pay for the land price,the final number of units supply were less than 5,000 units,and the government can clearer grasp of the actual completion time without "guesses".
Help to open the 'deadlock' of land price
As for there are industries worried about the arbitration mechanism may be reminiscent of the government to reduce the land price in disguise,a senior surveyor Chan Tung Ngo pointed out that although the amount of land price under the arbitration mechanism may fall indeed,but also cannot exclude the land price will be higher than the expected level of the developers finally,and if the Lands Department and the developers were agreed to the arbitration,it is expected that it can shorten a long discuss process which have happened in the past few years,helped to speed up the first-hand property supply on sale,from this perspective,the arbitration mechanism is still more good than harm.
The Chairman of Real Estate Developers Association of Hong Kong Leung Chi Kin said recently that the arbitration mechanisms of land price have been proposed for several years in fact,but the government and developers thought that there is difficulty when it have implemented,and this time have reported on the policy address officially,at least have provided a solution for the consultations of land price which have "killed knot "as often in the past".
