Hong Kong plans just 2 land sales in next quarter despite housing rebound
The Hong Kong government will release two parcels of land for sale – one for a residential development and another for a student hostel project – in the October to December quarter, as officials maintain a cautious stance towards housing supply even as the market rebounds. One residential site – an 8,015-square-metre (86,250-square-foot) parcel of land in Sha Tin – will be offered through tender…
The Hong Kong government plans to auction just two land parcels in the upcoming quarter, despite a rebound in the housing market. One parcel, an 8,015-square-meter site in Sha Tin, will be offered for a residential development through tender in Q3 2026-27, potentially providing 960 flats. The other parcel, a 1,100-square-meter site also in Sha Tin, will be allocated for student hostel accommodation, expected to yield around 600 hostel spots.
Despite the market sentiment remaining positive, developers expressed cautious optimism, with Kerry Properties recently securing a HK$4.3 billion bid for a residential site in Ho Man Tin. However, the residential market saw a 40% drop in sales in Q3 and a 21% decline compared to the previous year. The total new housing supply for the financial year is projected to reach 15,680 homes.
The Sha Tin residential site is valued between HK$2.7 billion and HK$3.2 billion per square foot, while the student hostel site is expected to provide robust demand due to the influx of international students. The government aims to meet its target of providing more than 70,000 additional beds for students over the next decade.
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