Hong Kong's developers want cheaper plots from the government
Alfred Liu , The Standard, Wednesday, October 28, 2009 – The Hong Kong administration “will step in decisively” to prevent unfairness and instability emerging in the real estate market, which has seen prices climbing to record highs amid land supply shortage, a government source told The Standard.
After meeting Financial Secretary John Tsang Chun-wah yesterday, the city’s biggest property developers said they want cheaper plots from the government, which is set to fine-tune its land supply policy. Executives including Cheung Kong (Holdings) deputy chairman Victor Li Tzar-kuoi, Sun Hung Kai Properties vice chairman Thomas Kwok Ping-kwong, Sino Land chairman Robert Ng Chee-siong and Great Eagle chairman Lo Ka- shui met Tsang at government headquarters for about an hour.
Tsang discussed issues concerning Hong Kong’s land supply system and property prices, telling the developers he is concerned soaring prices for luxury homes may lead to price surges in the mass market, according to the source.
The government still hopes prices will adjust through market mechanism.
“But if there is anything unfair or unhealthy happening in the property market that affects economic development or people’s livelihood, the government will step in decisively,” the source said.
Given the difficulty of meeting the government’s land auction requirements, representatives from the Real Estate Developers Association stressed they support the government’s land sale application list system, while seeking changes.
“The developers are asking the government to assess the value of land sites closer to prevailing market prices for developers, to trigger them easier from the application list,” said association vice chairman Stewart Leung Chi- kin, who is also an executive director at New World Development.
The developers also hope the government will increase the opportunities for selling land via applications, Leung said. read more at TheStandard.com.hk…
