The government of the Hong Kong Special Administrative Region predicted that 13,700 new private residential units will be made available in the 2025-26 fiscal year, which will meet the government’s target of 13,200 units.

“The government will put eight residential land sites for sales for the next financial year, which will provide 4,450 residential flats. Together with railway property development projects, Urban Renewal Authority projects and private redevelopment development projects, the potential supply of about 13,700 units is expected in the next financial year,” Secretary for Development Bernadette Linn Hon-ho said at a news conference on Friday.

In the first quarter of the next financial year (April to June), about 690 residential units will be supplied through tendering a residential plot in Tuen Mun and private redevelopment development projects, Linn added. All these eight residential land sites are estimated to provide less than 1,000 units each.

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Among those eight residential land plots, three are rolling over from the land sales program of the current financial year (2024-25), and the other five land sites are newly added in the land sales program of 2025-26.

“The government will monitor market sentiment in launching land sales. As the market recovers, I believe that launching small residential land plots at this time will be quite attractive to the market,” Linn said.

The residential land plot in Tuen Mun is near light rail stations, with convenient transportation and mature supporting facilities that will have a certain appeal to the market. The five newly added sites are all in the urban area and were rezoned from some closed school buildings, street markets, and government agency community facilities.

“In the coming five years, the government has reserved land that could build 80,000 private residential flats, excluding railway property development projects, Urban Renewal Authority projects and private redevelopment development projects,” Linn said.

“Many of them are well supported by good transportation, infrastructure and community facilities. The sites are mostly small-and-medium size and will likely attract developers to submit tender proposals due to lower development threshold,” said Chester Leung, valuation and advisory services partner at CBRE Hong Kong.

“The land sales program of 2025-26 reflects the government’s consideration of the prevailing market condition and the capacity of developers,” said Kathy Lee, head of research and retail consultancy at Colliers Hong Kong.

Meanwhile, Secretary for Housing Winnie Ho Wing-yin said that there will be enough land to meet the supply of 308,000 public housing units in the next 10 years.

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“With the completion of 30,000 light public housing units, there will be 190,000 units in the next five years, an increase of about 80 percent over the five-year period when the current government took office,” Ho said.