'Revenue not the only consideration for land sales'

RTHK：Video News

Development chief Bernadette Linn says financial proceeds are just one of the factors the government considers when it comes to the pace of land sales, saying market sentiment and the effect on prices of putting a plot up for sale are also important. Amid a sluggish property market, the government has eight plots in its land sale programme in the current financial year. One plot in Sha Tin was put up for sale in the last quarter, and another in the same area in the quarter before that. Speaking in an exclusive interview with RTHK, Linn said if a plot goes unsold or the bids received are far lower than market estimates, it can hurt property prices in the relevant district. The minister said officials therefore need to assess the sentiments of the market and developers when making decisions. She said the land sale programme can serve as an adjustment tool and if there is sufficient private land, then the government doesn't need to roll out as much. The secretary noted that in the past three financial years, not all sites in the programme were made available for bidding. Linn also described the economy as being at a turning point right now. "Many people have expectations about the US cutting interest rates later. Will Hong Kong follow? Everyone can see the market sentiments, like in the past half a year, there has been economic growth," she said. "But everyone is taking the wait and see approach - whether the growth is sustainable. Investors are taking that approach, and so are developers who bid for land." Linn also shot down the idea of returning to the system before 2013, when land sales were triggered by developers' applications. She said the government needs to have control over land provision and stability, saying the public could get very pessimistic about the market if developers are conservative and don't make applications. For the current financial year, the government has yet to put up any commercial plots for sale. Linn said if office vacancy rates in the upcoming quarters remain similar to current levels, there's a chance the government will continue to defer rolling out plots. She said there are currently plenty of commercial buildings under construction, and so supply is not a problem.