Hong Kong Development Bureau: Approximately 63% of the target housing supply for the current fiscal year has been achieved, with developers being relatively conservative in land investment.

On January 7, Stanley Ng, Secretary for Development of the Hong Kong Special Administrative Region, met with the media regarding the land sale plan for the first quarter of 2025. He stated that based on the overall situation for the year, along with the supply from the first three quarters of the year, it is estimated that a total of approximately 8,340 private residential units from various sources will be available throughout the four quarters of the year, representing 63% of the annual supply target. This number does not yet reflect the possible supply from cases that do not require amendment of land leases in the fourth quarter, as these figures are usually calculated later. Ng mentioned that the supply of private residential land in the current financial year may not necessarily meet the annual target, which he considers a foreseeable and reasonable deployment. Due to the high interest rate environment and geopolitical factors affecting fund flows, the local asset market has been suppressed, leading developers to be more conservative in land investments during this period. He mentioned that despite recent cuts in bank interest rates and an improvement in economic conditions, developers still need time to deploy resources. Therefore, even though the Hong Kong government has land available, they will continue to adopt a pragmatic and cautious approach in land sales this quarter. The government will respond to market conditions with a prudent and practical attitude, adjusting land sale strategies flexibly. Additionally, the private residential land supply in Hong Kong over the past few financial years has actually exceeded the annual targets, with a surplus of a total of 12,000 units if calculated over the past four years, which can significantly offset the projected shortfall for the current year.