Analysts recommend a measured approach to land sales as Hong Kong advances its Northern Metropolis project to support ongoing recovery in the residential property market.
As Hong Kong moves forward with its Northern Metropolis development zone, analysts argue the government should take a cautious approach to land sales to help sustain the recent recovery in the residential property market.
The parcels of land comprise three residential sites and three enterprise and technology park sites. They measure about 11 hectares and can supply more than 3,100 flats and about 280,000 square metres of industrial floor space.
Eric Tsang, acting head of valuation and advisory services at Colliers Hong Kong, said recent land tenders reflected a more realistic supply pace alongside improving bidding momentum, which helps support price stability and market confidence. He added that land supply should remain measured, structured and disciplined.
Derek Chan Hoi-chiu, head of research at Ricacorp Properties, said the government should maintain its current approach of small steps, quick strides and quarterly fine-tuning. He noted the total potential supply of around 98,000 private housing units over the next five years should stay unchanged while shifting focus towards the Northern Metropolis.