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Land sales revenue set to exceed $36 billion this year
Revenue from land transactions this year is likely to exceed the forecast figure of $36 billion, the Director of Lands, Mr Bob Pope, said today (Friday).
Addressing a seminar on "Investing in Hong Kong's Property Market: 1997 and Beyond", Mr Pope said that in keeping with previous years' estimates, the figure was shown to be too conservative and indications currently were that our revenue would exceed this figure.
He said that of the $36 billion forecast revenue from land transactions, only $13 billion, or 36 per cent, would come from sales by public auction or tender.
"In recent years, due to the large developments above the airport railway stations serving the new airport there has been a larger amount of land disposed of by private treaty grant to the Mass Transit Railway Corporation who in turn tender out development contracts with consortia of local and overseas developers.
"Total revenue from land transactions in the past five years has been a remarkable $157 billion of which $80 billion, or 50 per cent came from sales by auction, $31 billion from sales by private treaty and $46 billion from lease modifications and exchanges," Mr Pope said.
Looking ahead, Mr Pope said the long term prospects still look good.
"Property supply figures are expected to increase from 1997 onwards. Major infrastructure projects spanning 1992 to 2001 are under way or planned with the $158.2 billion airport and related road and rail systems entering their final stages.
"Hong Kong will maintain its position as a major financial and business centre and transport hub for the region and as a result, the property and stock markets will remain strong and real long-term growth in values well into the next century can be expected," Mr Pope said.
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