Realistic valuations, key to a successful land sales programme: Colliers
Recently, the Hong Kong government announced that it would be selling fewer plots of land this year, dropping from 17 to 12. Hannah Jeong, the Head of Valuation & Advisory Services at Colliers Hong Kong, shared her opinion on this announcement. While this year's reduction in land plots is comparable to last year's, Jeong drew attention to the fact that the government missed its sales revenue target last year and sold land at a lower price than anticipated. Jeong recommended that the government should consider market conditions and seek the advice of market players when determining property values.
Jeong also mentioned three sites that are expected to interest developers and could offer over a million square feet of residential property. However, she remarked that a site situated in Kai Tak may not be of interest to developers due to insufficient infrastructure and a low population concentration. Furthermore, Jeong revealed that the government aims to sell 20,550 units over the next two to three years, but there may be obstacles for developers in achieving this objective. To make housing more affordable, Jeong proposed that the government should decrease stamp duty.
In conclusion, the reduction in land plots being sold by the Hong Kong government may not have a significant impact on the residential market, but it is critical for the government to factor in market conditions and consult with market players when evaluating property. Moreover, developers may encounter difficulties in reaching the expected number of units over the next few years, and decreasing stamp duty may help make the housing market more accessible.
To know more, watch the full interview.