Thursday, August 16, 2007

Land Supply Shortage? What Shortage?

With the opening of the Western Corridor and the Lok Ma Chau spur line, and the recent publication of the Bauhinia Foundation Research Center’s report named “Building a Hong Kong-Shenzhen Metropolis”, the New Territories property market has begun to buzz with excitement. Real estate agents expect to see much interest in Tuen Mun, Yuen Long and Sheung Shui residential properties from Shenzhen buyers. Some are coming armed with bags of yuan for down payments, according to some agents. But caution is also holding back the agents’ exuberance: supplies are abundant, especially in western New Territories.

If the policies recommended in the report materialize, Shenzhen residents will soon be able to shuttle freely between Shenzhen and Hong Kong by the swiping of their smart cards at the border. Lining up to welcome them, other than the agents, will be Hong Kong’s mighty developers, as they couldn’t be happier to find a new pool of purchasing power for their built or to be built flats in the New Territories.

Under the same policies though, large tracts of land in the Frontier Closed Area (covering 2,800 hectares) and the Hetao area owned by Shenzhen (covering 96 hectares according to a mainland blogger) are to be developed. After all, Hong Kong does not have a land shortage problem, does she?

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