Hong Kong developers' land supply escalates to 71,000 units

As of December last year.

According to Barclays, over the past four months, it has seen the Hong Kong government officially adopt the Long Term Housing Strategy Committee’s recommendation of building 470,000 homes over the next 10 years with the public and private sector taking a 60/40 split.

Other key developments have included the following:
• Relaxing the maximum plot ratio in selective areas by 20%.
• Lifting the development moratorium on Pokfulam.
• Establishment of the Lantau Development Advisory Council.
• Introduction of land premium arbitration to speed up the farmland conversion process.
• Seven measures to boost commercial land supply
• 2014-15 Land Sale Programme to provide 34 residential sites with 15,500 available units, up from 14,000 units in FY2013-14.

Here’s more from Barclays:

As the government continues to increase the land supply, the developers’ total supply has continued to rise, with 71,000 units on hand as of December 2013.

On the land sale front, although the data are more mixed, several recent land tenders suggest that land prices are also coming down.

With the Hong Kong government fully committed to increasing the land supply, the greater ease in landbank replenishment means that developers no longer have to ration their inventory and compete as aggressively for limited sites.