Unity Hong Kong Fund: Hong Kong Development Bureau removes large land parcels and focuses on more practical approaches with smaller land parcels.

The Hong Kong Development Bureau announced its land sale plan for the fiscal year 2024/25, with 8 residential sites to be sold totaling 5,690 units. Leung Yuk-ho, the director of the land and housing research at the Unity Hong Kong Fund, stated that in the current uncertain market environment, the Development Bureau has made corresponding adjustments to its land bank, including removing some large land plots, adding smaller plots, and keeping flexibility to split large plots if needed. This cautious and practical approach aims to adapt to market conditions. Leung Yuk-ho noted that the government's stance on land sales in the first quarter showed continued caution after the full "withdrawal of cooling measures". The smaller size of the plots in Siu Lek Yuen requires low entry barriers, and with the recent increase in land price financing ratios by the Hong Kong Monetary Authority, it eases cash flow pressures for developers, attracting more participation. Additionally, these plots are located near established areas, indicating the government's intention to test the market using relatively safer plots. Furthermore, Leung Yuk-ho mentioned that the government has withdrawn two plots in Tung Chung and added new non-rolling plots from other areas. This reflects the government's abundant land reserves during the land creation harvest phase, allowing selection from various sources to coordinate mixed development in different new development areas. This approach avoids concentrated development projects in close proximity, increasing the attractiveness of the plots and the success rate of tendering.