Colliers has provided insights into the 2026/27 Land Sale Programme, highlighting a cautious forecast for land revenue at $18b, down from the previous year’s $21b estimate. This adjustment reflects the government’s alignment with current market conditions and expected tender responses. The programme includes inviting Expressions of Interest for developing post-secondary student hostels on three sites, with potential public tenders as early as next financial year.
Eric Tsang, Acting Head of Valuation & Advisory Services at Colliers, noted that the 2025/26 financial year saw land revenue of approximately $17.5b, about 83.3% of the original estimate. This was due to limited land sale sites and smaller site scales. The forecast for the coming year remains cautious, considering market conditions and the pace of land disposal.
Elliott Hau, Head of Financing Valuation, highlighted the release of 13 residential sites in collaboration with the MTR Corporation and Urban Renewal Authority. These include sites in Stanley, Sai Kung, and Tung Chung Area 106A, carried over from the previous programme, and new sites in Shek Mun, Ho Man Tin, and the Northern Metropolis. The distribution aligns with the government’s future development plans.
Alvin Leung, Senior Director, mentioned the potential tendering of luxury residential sites at Cape Road in Stanley and Clear Water Bay Road in Sai Kung. These sites, previously untendered due to subdued market sentiment, may be launched to capitalise on the recovery in the luxury property market.
The continued suspension of commercial land sales aligns with expectations, given the elevated Grade-A office vacancy rate of 17.5%. The market requires more time to absorb recent supply, despite improved sentiment and leasing activity.
