Perception of land scarcity, meanwhile, is seen as slowly changing as property developers show lukewarm response to auctions.
Standard Chartered’s Kelvin Lau noted:
|There is still a clear need for the government to ensure sufficient land supply to contain price rises. The government has already achieved some success in this regard by proactively offering land sites for sale in recent quarters. 6,000 new residential units will be generated from land sold through this channel in Q3-2011, and another 5,100 units are planned for Q4. Some of the land being pushed into the market is designated for small and medium-sized units. Property developers’ lukewarm response at recent land auctions is a welcome sign that the perception of land scarcity is slowly changing. A confirmation in the upcoming Policy Address that private units will continue to be created at a pace of around 5,000 per quarter would help to reinforce the government’s prior commitment to making about 20,000 new private residential flats available per year, on average, over the next 10 years. (By comparison, 13,405 residential units were completed in 2010.)|
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