Henderson Land Development to Play Angel in Housing Issues of Hong Kong
As per the latest global life report by CBRE, Hong Kong is the most expensive housing market in the world. The country’s public as well as private housing supply is under continual depletion. In order to deal with this ongoing challenge, even private housing distributors will have to actively participate.
In recent news on Friday, the third-biggest private landowner of Hong Kong, Henderson Land Development announced that they will donate 100,000 square feet of farmland in Kam Tin, New Territories. The loan will be offered for ten years to set up housing accommodation for nearly 10,000 residents.
The land will be donated in Yuen Long to make youth hostels.
Another organisation that offered land to the Hong Kong government and non-profit organisations for building public homes was New World Development. The action was taken deliberately after Beijing criticised the developers in Hong Kong for not doing their bit to relieve the housing problems of the city.
New World Development highlighted that they will loan three plots of agricultural land which is 28,000 sq. feet in the New Territories to “Light Be”, a non-governmental organisation in order to build more than 100 small-sized apartments in 2022.
The announcement made by Henderson can be seen as a generous move on the part of private land developers. The move shows that developers like New World Development and Henderson have now realised the need of the hour and will not fight back against any attempted land seizure by the government.
Founded by the nonagenarian tycoon Lee Shau-kee, Henderson said, “We will cooperate with the government if it invokes the Lands Resumption Ordinance to take back the land we own.”
As the head of investment advisory Avis Mak said the donation made by Henderson is better than the one by New World. He highlighted that by making significant additions to the value of the land, Hendersons’s offer might speed up the infrastructural development of the farmland.
Even Li Ka-shing, Hong Kong’s richest man, affirmed his contribution to support local small and medium sized businesses by donating HK$1 billion.
Despite the Long Term Housing Strategy Report (LTHS) released by the government in December 2018, the condition of private residential development is not good. Moreover, the pace of construction works has slowed overall. Sources claim that over a time span of ten years, there will be a shortfall of almost 85,000 units in the public sector.
Even though the Lantau Tomorrow Vision will help solve the residential problem in Hong Kong, there is a dire need for a more multidimensional approach to eradicate the problem with the help of land developers like Henderson.
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