According to the iFast Financial app, the Hong Kong Development Bureau has just announced the land sale plan for the 9th to 12th months, with land parcels to be launched next quarter including a large residence in Tai Wai and a multi-storey industrial site in Wang Tau Hom. The Tai Wai residence project is located on Mei Tin Road and is expected to provide 360 units, adding new land. The multi-storey industrial site in Wang Tau Hom will continue to use the dual-envelope system, and the tendering period will extend to the end of January next year. This season, there are about 2,200 private residential land units, adding up to about 6,400 units with the supply in the first two quarters of this year, accounting for approximately 50% of the annual target. Mtr Corporation (00066) plans to re-launch Phase 1 of Tung Chung East Station, expected to provide 600 units, as well as 3 private redevelopment projects involving approximately 1,230 units.

Zhang Jingda, Executive Director of Centaline Surveyors, stated that the United States announced a 0.5% interest rate cut at the end of last month, and Hong Kong banks followed suit. With a low stock price strategy, developers have been actively listing new properties and achieving good sales under the low price strategy. The overall market sentiment has improved, leading to increased developers' confidence in investing in land. However, developers' remaining inventory is still high at the moment, coupled with high construction costs, keeping property prices in a consolidation period. Most developers are not in a rush to increase land reserves, and their bidding stances tend to be conservative. For the next quarter, the government's decision to only auction one residential land parcel seems to be in line with the market situation, following the approach of the past two quarters by only bidding on a smaller area of land located in mature areas to reduce the risk of non-fulfillment, while also stimulating the market. The property market has entered an interest rate reduction cycle, with the Federal Reserve expected to cut rates again this year. If the interest rate cut stimulates the market starting in the fourth quarter, stabilizing property prices and boosting market confidence, it is believed that developers' confidence in land investment will also increase, making it appropriate for the government to increase land supply at that time.

As for the next quarter, a large Tai Wai Mei Tin Road residential land parcel will be released, with a land area of approximately 0.038536 million square feet. Situated near Belvedere Garden and Belair Gardens, among other residences, it is expected to provide around 360 units. The surrounding area of the land parcel is well-developed, with limited new supply in the area. With a moderate scale and investment amount, it is quite attractive. Considering recent land bids in Siu Lek Yuen, the estimated price per square foot of gross floor area is around HKD 3,000, which is expected to attract the attention of medium and small developers, developing into medium and small units and providing ample opportunities for increasing the supply of upper car park spaces in the area. As for the multi-storey industrial site in Wang Tau Hom, it is a special-use land. The government has more considerations in land development design, so it is sold in the form of a dual-envelope system, which can better cater to the land development uses in the area.