Secretary for Development unveils govt's 2011-12 land sales program

Secretary for Development Carrie Lam said Thursday that the government could ensure the supply of nearly 20,000 flats out of the targeted 40,000 flats set by Financial Secretary John Tsang in his budget speech.

The rest of the target will depend on market dynamics, she said, referring to land sales triggered through the initiative of private developers.

Lam unveiled the government's land sales program for the fiscal year starting April 1, which will make 52 residential project sites available for sale.

The government announced 18 new sites for sale, with 15 added to the Application List system. These include two sites in Ho Man Tin and a 6.7 hectare plot in Tuen Mun.

Based on the program, nine plots have been designated for government-initiated sales, providing up to 4,500 units, while the rest will be put into the government's Application List system.

Together with projects located above several MTR stations and projects undertaken by the Urban Renewal Authority, the government can ensure the supply of around 19,000 flats, Lam said. Both MTR Corp and the Urban Renewal Authority are government-controlled entities.

"Such a number is not moderate, we are taking a very proactive approach this year," said Lam at the press briefing, fending off criticism by the public and legislators.

The rest of the targeted home supply is expected to come from the plots on the Application List.

However, Lam said whether the sites on the application list will be sold depend on market forces as the government cannot force developers to buy land.

Home prices in the city have spiked more than 60 percent since 2009 on record-low mortgage rates and an influx of mainland buyers, according to local real estate broker Centaline Property Agency Ltd.

Surging property prices have prevented many in the city from owning a house of their own, leading to demands that the government take the initiative and sell more land. There have also been calls to even resume the Home Ownership Scheme, which provides government-built and subsidized flats to residents who can't afford a home in the private market.

Government figures showed that 23.8 percent of the 1,100 square kilometers land in Hong Kong has been developed.

"There is room for further development, but we must make comprehensive plans," said Lam in the press briefing.

She said the government will closely monitor the property market and make sure that "flexibility remains with us" by releasing more supply of land to the market.

"Our job is not to drag down property prices, but to tackle the issue from the supply side," she said.

According to the land sale program for the new fiscal year, the government-initiated land sales will kick off in April. Two Hung Hom sites, namely 5-23 Lee Kung Street and the site at the junction of Bulkeley Street and Gillies Avenue South, will be made available for tender.

China Daily

(HK Edition 02/25/2011 page2)