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LBAC discusses property market
The Land and Building Advisory Committee (LBAC) discussed the recent speculation activities in the property market and the Government's move to speed up land exchange and lease modifications cases today (Monday).
Chaired by Dr Cheng Hon-kwan, the Committee expressed concern about the recent speculative activities in the property market, especially in respect of luxury flats.
The Committee noted that Government had set up a working group to analyse the market situation and the effect of the speculation activities on end users.
Dr Cheng said, "We think an increase in land supply for housing will be very helpful. We also need to examine the situation carefully and identify the crux of the problem before making any decision which may have implications on the free market.
"The Secretary for Planning, Environment and Lands has undertaken to identify more land for housing development.
"As a related issue, we understand that the estimated number of flats to be produced from land transactions executed by Government in 1996 is about 45,000. Together with the land transactions taken place in the private sector, about 60 000 flats could be produced. This figure is encouraging as compared with those of the last few
years.
"The Committee also suggests Government to critically review their industrial land policy in view of the shift of the manufacturing industry to China.
"We understand that at present the Government has been rezoning and giving approvals to applications to convert old or obsolete industrial sites to other uses and will continue to do so where circumstances permit.
"The Government is also conducting a study on the future demand of industrial land. As a move to meet the pressing need for housing, we think the rezoning of not just part of the old industrial areas but also land reserved for industrial use would be helpful," said Dr Cheng.
The Committee also noted that the Lands Department had recently conducted a consultancy study with a view to expediting and improving the processing of land exchanges and lease modifications.