The Chief Executive in Council approved the grant of the two sites, which are on Bailey Street in Hung Hom and at Tseung Kwan O Area 137.
Tony Tse, who represents the architectural, surveying, planning and landscape sector in Legco, said it is rare for the government to grant sites to the URA, but he believes it is the right move amid a sluggish property market.
“In view of the current property market, probably they are facing [a situation where they have to] buy high, sell low, which [puts] pressure on the cash flow as well as their assets,” he told RTHK.
The legislator said both sites are located in urban areas and attractive for residential development.
However, he thinks the site in Tseung Kwan O is more suitable for private homes as there is sufficient land reserved for public housing development in the area.
“It is a large site of nine hectares,” Tse said.
“They have to do more on the planning, on how the site [is] subdivided so that they can attract more interest from private developers to have joint venture with the URA.”
Meanwhile, the vice president of Our Hong Kong Foundation, Ryan Ip, said he expects residential units at the two sites to be launched in the market within five years at the earliest, after rezoning, levelling, bidding and construction work.
Ip said the land grants can help alleviate cash-flow pressure on the URA in the short term and ensure that its current redevelopment projects will not stagnate.
