Information Paper for
LegCo Panel on Planning, Lands and Works and
LegCo Panel on Housing
Joint Meeting on 30 March 1999
Land Sale and Development Programmes for 1999/2000 to 2003/2004
This paper provides information on the Land Sale and Development Programmes for 1999/2000 to 2003/2004.
Resumption of Land Sales
2. On 12 February 1999, the Government announced that land sales will resume with effect from April 1999 and published the Land Sale Programme for 1999/2000 and the Land Development Programme for 2000/2001 to 2003/2004. A summary table on the Programmes is at Annex A.
3. In drawing up the Programmes, the policy objective is to ensure stability in the property market and to provide sufficient land to meet Hong Kong's long term needs.
Land Sale Programme for 1999/2000
4. For the 12 months from 1 April 1999, six auctions and eight tenders will be conducted in accordance with a timetable for individual sites with a total of 14 hectares of land for private housing, 15 hectares for the Private Sector Participation Scheme (PSPS) and 2 hectares for non-housing uses. Most of the sites are carried over from the nine-month moratorium on land sales. Sites for auction are generally small sites and all are for private housing. Sites for tender are generally larger ones which cover mainly PSPS sites or non-housing uses. The detailed auction and tender programme is at Annex B.
5. For the same period, a reserve list of sites, including 22 hectares for private housing and 11 hectares for non-housing uses, has been drawn up which will be made available for sale by application. A developer who is interested in any site on the list may apply to the Government for the sale of the site, and offer a minimum price. If the Government considers that the minimum price is acceptable, it will put up the site for sale by public auction or tender as appropriate. Details of the reserve list together with the procedures for land sales under this arrangement which is called the Application System are at Annex C.
6. The combination of sites on the reserve list together with a modest regular land auction and tender programme enables the market to decide the optimum amount of land to be made available for disposal and the timing for releasing additional land. The flexibility offered by this new mechanism will enable the Government to respond to market demand while maintaining overall stability, thereby helping the Government achieve its objective of stable property prices.
Land Development Programme for 2000/2001 to 2003/2004
7. For 2000/2001 to 2003/2004, a Land Development Programme comprising 330 hectares of land for private housing, 27 hectares for PSPS and 192 hectares for non-housing uses has been drawn up. The timing and method of land sales for 2000/2001 will be decided in early 2000, having regard to the market conditions at the time.
Private Treaty Grants
8. As part of the Land Sale and Development Programmes for 1999/2000 to 2003/2004, it is expected that 88 hectares of land will be granted by private treaty mostly for railways associated private housing development, and 103 hectares will be granted for public utilities, educational, welfare and religious uses.
Land for Housing Development
9. For public housing, during 1999/2000 to 2003/2004 the Programmes will provide 42 hectares of land for PSPS. An additional 163 hectares of land will also be provided outside the Programmes for other forms of public housing under the purview of the Housing Authority (HA) and Housing Society (HS). These 205 hectares together with the redevelopment projects under the purview of HA and HS will be sufficient for producing on average 50,000 flats per year.
10. For private housing, during 1999/2000 to 2003/2004 the Programmes will provide land to the amount of 382 hectares. The actual number of flats to be built and put on the market by private developers will nevertheless be determined by market demand and developers' commercial considerations.
Planning, Environment and Lands Bureau