Hong Kong expects higher private housing land supply as outlook brightens
The government has halted commercial land sales since the 2023/24 financial year due to continued soft office demand
[HONG KONG] The Hong Kong government said on Monday (Dec 29) that private housing land supply for the full financial year is expected to exceed its initial target by 20 per cent, encouraged by a positive outlook from property developers.
The government told reporters it plans to put two more small-to-medium sized residential sites up for tender in the January to March quarter. Both are in downtown areas.
Together with other sources of land supply from private development and redevelopment projects, private housing land supply for the full financial year ending in March is expected to support nearly 16,000 residential units.
“We are encouraged to see this overshooting, because it reflects the private market is gaining momentum and picking up again,” the Secretary for Development Bernadette Linn told reporters. “We are glad to facilitate through land sales as well, and this is why we are rolling out two sites this quarter, even though we’d possibly exceed the target.”
Private home prices in Hong Kong, one of the world’s least affordable cities, grew 0.9 per cent month-on-month in November, the sixth straight month of increases, government data showed on Monday, as interest rate cuts and a vibrant stock market supported sentiment.
Prices have risen 2.8 per cent so far this year, after tumbling nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook and poor demand after many professionals left due to strict Covid-19 curbs and new national security laws.
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The government has halted commercial land sales since the 2023/24 financial year due to continued soft office demand. REUTERS
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