Hong Kong government land sales recover in fiscal year, Colliers says

Hong Kong’s government land sales have shown a steady recovery so far this year, with land revenue exceeding HK$6.5 billion in the first three quarters of the current financial year, property consultancy Colliers said.

The government has launched and sold two residential plots, located on Hoi Chu Road in Tuen Mun and at the junction of Wing Shun Street and Texaco Road in Tsuen Wan.

The two sites were awarded at prices about 40 percent and 25 percent above the upper end of market valuations, respectively, signalling a shift in developers' bidding behaviour from a previously conservative stance to a more cautiously proactive approach, Colliers said.

Colliers added that the global interest rate easing cycle has helped underpin the housing market, with average mortgage rates for new residential loans falling to around 3 percent from above 4 percent in mid-2024, improving investment incentives in the land market.

Talent admission schemes and demand from overseas students have also accelerated inventory absorption, increasing developers’ need to replenish land banks, the consultancy said.