Hong Kong Property: Positive response to land sales in the current fiscal year; developers optimistic about the market outlook and actively replenishing land reserves.

Hong Kong Property: Positive response to land sales in the current fiscal year; developers optimistic about the market outlook and actively replenishing land reserves. Wang Pindi, Director of Research at Hong Kong Property, said that the Development Bureau of the Hong Kong SAR Government announced today its land sale plan. In the third quarter of the current fiscal year (October to December 2026), one residential government site in Shek Mun will be launched, involving about 960 units; one project of the Urban Renewal Authority in To Kwa Wan, involving about 1,050 units; plus 7 private development/redevelopment projects involving a total of 1,835 units, bringing the total potential land supply to about 3,845 units. Together with the first half of the current fiscal year, the potential supply for the first three quarters of this fiscal year (April to December 2026) is about 15,680 units, already exceeding the land supply target of 12,600 units for this fiscal year. Wang Pindi pointed out that potential land supply in the current fiscal year is considerable, and the response to land sales has been quite positive. The MTR Tuen Mun Area 16 Phase 2 property development project launched during the period, involving as many as 5,510 units, was a notable large-scale project and was successfully sold during the period; in addition, the Ho Man Tin residential government site launched during the same period was also successfully sold recently, with the transaction price exceeding market valuation by nearly 40%, reflecting that developers are optimistic about the outlook and are willing to actively acquire land to increase their land reserves. The increased willingness of developers to acquire land is related to the improvement in the new home market this year. Brisk new home sales help developers accelerate destocking and capital recovery, thereby enhancing their ability to participate in land sales and replenish land reserves. According to data compiled by the Research Department of Hong Kong Property from the Sales of First-hand Residential Properties Electronic Platform and market sources, the transaction value of new homes in the first 9 months of this year was about HK$191.56 billion, a surge of about 30% from about HK$146.73 billion in the same period last year, setting a record high for the same period since the introduction of the first-hand sales ordinance. If market sentiment continues to improve and residential transactions remain active, it will be conducive to upward movement in property prices, and developers will also be able to accelerate capital recovery; developers are optimistic about the outlook and are willing to actively acquire land, speeding up the economic cycle of the property market and bringing a positive effect to the market.