Govt to sell industrial site

January 4, 2024

Secretary for Development Bernadette Linn: 
In this fourth quarter, the Government will put up for tender an industrial site near Yuen Long InnoPark for the development of multi-storey buildings for modern industries, in order to promote the development of industries and help consolidate brownfield operations in a land-efficient manner. 

This industrial site is around 3.2 hectares in size and is expected to provide floor space of around 160,000 sq m. Unlike (with) industrial sites in the past, we will request the developer, under specific land sale conditions, to set aside and transfer no less than 30% of the constructed floor space to the Government so that we (can) lease the relevant floor space to brownfield operators affected by government development projects at a rental comparable with the market rental of existing brownfield sites. 

As regards private housing land, we estimate that eight private development projects (will) complete their lease modifications in the fourth quarter, providing a supply of about 1,630 flats. Adding on the supply of 1,940 flats from the Starter Homes project at Yau Kom Tau, Tsuen Wan, which the Hong Kong Housing Society has already agreed to take up, private housing land supply in the fourth quarter is expected to support the development of around 3,570 flats. Taking into account this expected quarterly supply from various sources, the fact that this year’s supply is rather near the annual supply target, as well as the fact that market sentiment in land tenders is rather sluggish recently, the Government will not separately put up any residential sites for sale in the fourth quarter.

As for commercial sites, considering that the vacancy rate of commercial floor space remains on the high side, we will not be rolling out any commercial sites for sale in this quarter.

(To watch the full media session with sign language interpretation, click here.)

The Government announced today that it will sell a Yuen Long industrial site by tender in the January-March quarter for the development of multi-storey buildings for modern industries.

Unveiling the Land Sale Programme for the fourth quarter of this financial year, Secretary for Development Bernadette Linn said the site, located near Yuen Long InnoPark, is around 3.2 hectares in size and is expected to provide floor space of around 160,000 sq m.

The site’s use will serve to promote the development of industries and help consolidate brownfield operations in a land-efficient manner, she added.

“Unlike (with) industrial sites in the past, we will request the developer, under specific land sale conditions, to set aside and transfer no less than 30% of the constructed floor space to the Government so that we (can) lease the relevant floor space to brownfield operators affected by government development projects at a rental comparable with the market rental of existing brownfield sites.”

In addition, eight private development projects are expected to complete their lease modifications this quarter, providing a supply of about 1,630 flats.

Adding on the supply of 1,940 flats from the Starter Homes project at Yau Kom Tau, Tsuen Wan, which the Housing Society has already agreed to take up, private housing land supply in the fourth quarter is expected to support the development of around 3,570 flats.

“Taking into account this expected quarterly supply from various sources, the fact that this year’s supply is rather near the annual supply target, as well as the fact that market sentiment in land tenders is rather sluggish recently, the Government will not separately put up any residential sites for sale in the fourth quarter,” Ms Linn said.

Together with a supply of around 7,960 units in the first three quarters, the total private housing land supply for this financial year is expected to support about 11,530 flats, which is close to the Government’s annual target of 12,900 flats.

The development chief added that the Government will not roll out any commercial sites for sale in the fourth quarter, considering that the vacancy rate of commercial floor space remains on the high side.