Hong Kong’s government will release a mid-size plot for sale in its fiscal second quarter, continuing its tight grip on land supply as the city’s residential property market grapples with a glut that has forced developers to slash prices to find buyers.
A plot measuring 6,500 square metres (70,000 sq ft) at the junction of Wing Shun Street and Texaco Road in Tsuen Wan in the western part of New Territories will be made available via tender in the July to September quarter, enough to provide about 780 average-sized flats, according to the Secretary for Development Bernadette Linn Hon-ho. About 940 square metres have to be set aside for social welfare facilities.
“The overall real estate market is slowly moving upwards, with an increase in the number of transactions and an active rental market,” Linn said during a press conference on Friday, adding that she did not rule out the possibility of launching large-scale sites, but that would depend on the prevailing conditions.
Ho said the current residential supply was stable, with six projects set to complete their lease modifications in the fiscal second quarter, providing another 4,170 units.
The total private housing land supply in the fiscal second quarter will support building 4,950 units, taking the total to 6,000 in the first half of the financial year – 45 per cent of the annual target.
