Hong Kong – SDEV speaks to media on quarterly land sale programme for January to March 2022

     Following is the transcript of remarks by the Secretary for Development, Mr Michael Wong, at a media session today (December 30) on the quarterly land sale programme for January to March 2022:

 

Reporter: How do the Government arrive at the new size limit? Do you expect that the new policy will make it harder for people to get on the property ladder? Is the Government planning to apply this limit to all development projects in Hong Kong?

 

Secretary for Development: In reaching the figure of 26 square metres, we have first looked at the subsidised housing project on Anderson Road. In that case, the minimum flat size is 23 square metres, so it is basically 10 per cent above that. Given the position of private housing on the home ownership ladder, which is the next rung up, we do believe it is appropriate for us to set a slightly bigger minimum size. The other factor we have considered is that according to the figures provided by the Rating and Valuation Department, for the past 5 years, if we look at the proportion of private housing unit supply, those that is smaller than 26 square metres in salable area is about 13 per cent. So about one-eighth of the private housing supply will be impacted by our new measure. We think is about the right balance, so that is why we choose the figure of 26 square metres in salable area as the minimum size.

 

     With regard to the coverage, it applies to Government land sale projects. If it works, we believe this requirement will continue in the 2022-23 land sale programme. We also believe that the MTR Corporation Limited is likely to also follow the Government’s practice. With regard to Urban Renewal Authority’s projects, they have already adopted a higher minimum size which we do not think we should intervene. As for existing housing stocks, the existing size is their existing size.

 

(Please also refer to the Chinese portion of the transcript.)