Hong Kong Development Bureau: No intention to reintroduce the land resumption system, nor do we plan to sell land and resume land concurrently to avoid disrupting land disposal strategies and pace.

Land premium income is one of the Hong Kong government's main sources of revenue. Some lawmakers are concerned whether the government will consider implementing targeted measures to reduce the upfront investment costs for developers and reintroduce the land premium system. Tommy Lam, Deputy Director of the Hong Kong Development Bureau, recently reiterated in the Legislative Council that the current system allows the government to control the pace and timing of land sale, ensuring stable and prudent land supply. Therefore, the government currently has no intention of reintroducing the land premium system, nor does it plan to sell land and implement the land premium system concurrently, in order to avoid disrupting the government's land sale strategy and pace, and creating market confusion. He stated, "If developers are interested in specific land, they can provide feedback to the Hong Kong Development Bureau through different channels for reference." Tommy Lam stated that market prices are influenced by economic conditions and the real estate market, fluctuating up and down. The government's policy goal is to maintain a consistent and stable land supply, promote social and industrial development in Hong Kong, and continue to create land and release it to the market in a prudent manner. He emphasized that regardless of external factors or market conditions, the government will strive to enhance the attractiveness of land, closely monitoring the market when formulating annual land sales schedules and deciding when to release land to the market, and listening to potential investors and industry opinions. Tommy Lam also mentioned that to encourage private organizations to participate in the redevelopment of old buildings, amendments to the Land Resumption Ordinance were implemented in December last year, lowering the threshold for land resumption applications and facilitating applications for contiguous sites. Since the implementation of the ordinance, the Hong Kong Lands Tribunal has received four land resumption applications. The government has also introduced other measures in recent years to encourage private organizations to participate in the redevelopment of old buildings and accelerate urban renewal. He cited the ongoing area studies in Sham Shui Po and Tsuen Wan by the Hong Kong Housing Authority, which will explore adjusting the maximum plot ratio in certain areas and increasing the feasibility of a higher plot ratio for redevelopment of specific old buildings. The Hong Kong Housing Authority will propose an updated master plan in the second half of this year.