Government Announces Land Sale Program for Q3 2024-25, Including Residential and Industrial Development Sites.

Government announces quarterly land sale programme for October to December 2024

The Government announced today (October 4) the quarterly land sale programme for the third quarter of 2024-25, i.e. October to December 2024.

The Secretary for Development, Ms Bernadette Linn, said in the third quarter of 2024-25, the Government will sell by tender two sites, namely, a residential site in Tai Wai and a site in Hung Shui Kiu (HSK) for development of Multi-storey Buildings for modern industries (MSB).

As regards the residential site, the site to be rolled out in this quarter is located in Mei Tin Road, Tai Wai, and expected to provide a supply of about 360 flats. The Government completed the relevant technical assessments earlier. Having considered the market response to the sale of residential sites in Sha Tin in the first two quarters as well as developers' greater interest these days in smaller-scale sites well served by the transportation network and amenities, the Government sees it appropriate to include the site in the land sale programme for sale.

In addition, the MTR Corporation Limited (MTRCL) plans to tender in this quarter its development project in Tung Chung East Station (Package 1), bringing about 600 flats. In view of the market response, the MTRCL reduced the development scale of this package to half its previous scale when it first tendered in October 2023.

As for private development and redevelopment projects, three projects are expected to complete their lease modifications in the third quarter, providing a supply of 1 235 flats, around 1 230 of which will come from a relatively larger-scale in-situ land exchange application in the Kwu Tung North/Fanling NorthNew Development Area (NDA) remaining phase. The applicant has recently accepted the Lands Department's Binding Basic Terms Offer for the project in Fanling North. This is the second case concluded after the Government revised in end 2023 the land exchange arrangements for the Enhanced Conventional New Town Approach. These in-situ land exchange applications will enhance the speed of implementing the Northern Metropolis and reduce the Government's upfront spending on land resumption and public works while allowing the Government to receive premium revenue earlier.

"Taking all sources of land supply into account, the total private housing land supply in the third quarter of this financial year would support the development of around 2 200 units. Together with the supply from the first two quarters, the total private housing land supply of the first three quarters of this financial year is expected to support some 6 470 units, which is around 50 per cent of our annual target of private housing supply (13 200units). This figure has not yet reflected private redevelopment projects not requiring lease modification in the third quarter, as such figures are only available at a later stage," Ms Linn said.

Regarding the industrial site, the Government will roll out shortly a site in HSK for development of MSBs. A two-envelope approach for disposal of this site will continue to be adopted in order to demonstrate the importance the Government attaches to the quality of such MSBs, with a view to achieving the Government's policy objectives to promote development of modern industries and at the same time consolidating some of the brownfield operations.

In order to keep up with market demand, the Development Bureau has undertaken further engagement with the market in the past few months. Based on the market feedback gathered, the conditions of sale of the HSK site will be adjusted:

(1) Plot ratio: the plot ratio of the HSK site will be adjusted from seven to five out of two considerations. First, modern logistics facilities require higher headroom and a plot ratio of five is sufficient for the development. Other logistics sites in the Northern Metropolis are in general with a plot ratio of five. Second, given the building height restriction currently in force, to fully utilise a plot ratio at seven would entail deep basement construction. It may not be cost effective to construct a basement given the high costs involved.

(2) Floor space to be handed over to the Government: In the first MSB site in Yuen Long of around three hectares previously rolled out, the Government imposed a condition to request the developer to set aside 30 per cent of floor space (at around 48 000 square metres) to be handed over to the Government for letting out to some of the brownfield operators affected by the Government projects. Given the HSK site has a larger site area of nearly eight hectares, the gross floor area (GFA) is much higher than that of Yuen Long site. The Government would therefore adjust the proportion of floor space of the HSK site to be handed over to the Government to around 20 per cent of the maximum GFA. The downward adjustment is a positive response to the market to enhance the financial viability of the project.

(3) Tender period: The market relays that this project involves a significant investment outlay, interested bidder(s) may need to consider partnership and negotiate with financial institutions on financing arrangement, and would need more time to formulate the technical proposals under the two-envelope approach. The tender period of HSK will therefore be relatively longer than a general cash tender to cater for the above.

Details of the tender will be announced when we commence the tender invitation for the two sites to be sold in this quarter.

The Government will continue to sustain its effort in rolling out land in a prudent manner to meet our housing and economic development needs.

​The list of the sites to be tendered in October to December 2024 is in the Annex. The actual tender timetable will be drawn up taking into account the progress of necessary preparatory work. The Lands Department will announce the detailed land sale arrangements before individual sites are put up for tender.

Buildings Department responds to media enquiries on development project at Anderson Road

In response to media enquiries about the steel reinforcement installation works in the superstructure of a development project at Anderson Road, a spokesman for the Buildings Department (BD) today (October 4) gave the following response:

The BD received a report in late August alleging that the steel reinforcements of some structural elements in the superstructure works being carried out at the Anderson Road site had not been installed in accordance with the requirements of the Buildings Ordinance (Chapter 123) (BO). The BD attaches great importance to the incident and has deployed its staff to the site four times since early September to inspect site operations, quality of work, site safety and the like. During the inspection on September 26, the BD staff found that the number of steel reinforcements installed at six beams on 29/F of Tower 3 of the site was less than that required in the approved plans. Nevertheless, there was no obvious danger to the overall structure.

As neither the representative of the registered structural engineer (RSE) nor the representative of the registered contractor (RC) could provide a reasonable explanation immediately on that day, the BD staff met with the RSE on the following day (September 27) and requested him to submit a detailed investigation and remedial works report, including the need for additional sampling tests to determine whether similar situations existed on other floors of Tower 3 and in other towers.

To facilitate the investigation requested by the BD, works of the Anderson Road development project have been suspended since September 28. In addition to the investigation and remedial works report, the BD also requested for a proposal to strengthen site supervision, and the site works cannot be resumed until the BD is satisfied with the report and proposal.

The BD is continuing its investigation into the incident and will consider appropriate enforcement action upon receipt of the RSE's report on the incident.

The BD is also reviewing the superstructure works in seven other private developments being carried out by the same contractor, and will step up site inspections to check their site safety and quality of works.

Of the eight private development projects mentioned above, four were taken over from Aggressive Construction Engineering Limited (ACEL), which was removed from the register of general building contractors in November last year. The RC involved in the incident was another independent RC. Under the BD's registration system, an RC must have a suitable authorized signatory (AS) to supervise the works. The AS of the RC involved in this incident was not the AS of ACEL, whose name was removed during the processing of its application for registration renewal last year. The delisted AS could not act on behalf of an RC for the purposes of the BO unless he attended the interview again and passed the assessment of the Contractors Registration Committee.

The spokesman reiterated that the BD attaches great importance to the safety and quality of building works. Whichever contractor is involved, the construction works are subject to stringent control under the existing system. The BO stipulates that registered building professionals and RC must properly supervise the works, including ensuring the carrying out of building works in accordance with the approved plans. If registered building professionals, RC and their technically competent persons identify any non-conformities, they must follow the requirements set out in the Code of Practice for Site Supervision 2009 (2024 Edition) and initiate the relevant procedures and rectify. The BD will conduct audit inspections at the critical stages of the building works, witness on-site tests, and review relevant certification documents for quality control.

The Anderson Road development project comprises six multi-storey residential towers, three of which (Towers 1, 2 and 3) are 32 storeys in height, while the remaining three (Towers 5, 6 and 7) are 24 storeys in height. Superstructure works for all six towers were underway, with the concreting works completed at various levels ranging from 22 to 29 storeys. Nine single-storey houses will also be built in the development.