Land for housing is in short supply and the government is running out of options

The problem stems from a lack of large-scale land development in the past 20 years. The low proportion of government, large and spade-ready sites is concerning

To break this vicious circle, long-term projects must be delivered on time, or even ahead of schedule

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Cranes are seen in front of a building in Tiu Keng Leng in May 2020. The 15 government sites listed in this year’s land supply programme for private housing can only supply 6,000 flats. Photo: Xiaomei Chen

Ryan IpandIris Poon

Published: 9:15am, 25 Mar 2021Updated: 9:15am, 25 Mar 2021

The land supply shortage has long been a major cause of Hong Kong’s housing problems. And the government’s latest land supply programme for private housing shows that the authorities seem to be running out of options. Of particular concern is the low proportion of government land, large sites, and spade-ready sites in the line-up.

First, this year’s programme lists only 15 government plots which can only supply 6,000 flats, the lowest in 11 years, and these units make up only 36 per cent of the total potential supply. This is hardly surprising, though, as the proportion of government sites has been declining over the years.

Second, there are few large sites. Of the 15 government plots, only three can supply more than 500 units each. And, third, the proportion of spade-ready sites – those which have been properly zoned for residential use, and sites which have been resumed, cleared and prepared, with adequate provision of infrastructure – is also low.

An increasing number of sites in the programme are still subject to planning or other land administrative procedures and are thus not ready for construction to begin. Six sites which come under the government and railway property development categories have not completed the rezoning process, doubling from only three sites last year.

Many still need clearing, including the government site at Tai Lam (Castle Peak Road in Tuen Mun), which is the largest in the programme and is estimated to be able to supply 1,750 units. Currently, it is still rented to a non-profit organisation on a short-term lease.