Adopting “Land-auction” Model in Tendering to Accelerate Development of Multi-story Logistics Building
The Hong Kong government’s plan to reclaim and clear 200 hectares of brownfield land in the New Territories by 2026 has presented a challenge for how to relocate affected brownfield operators in order to drive development. To speed up the construction of multi-storey buildings, the government will adopt the “land auction” model, which involves putting up undeveloped land for bidding and allowing investors to kickstart the planning process. The first 11 hectares of multi-storey building development land will be put up for auction later this year.
In addition, the government is considering postponing the land acquisition schedule for some brownfield sites to give operators more time. The government is also exploring the use of green land as an alternative relocation option to alleviate the impact on brownfield operators affected by development. To support these operators, the government will set up a task force to assist them in finding new locations. The multi-storey building and New Territories Science and Technology Park sites are expected to be the first to use the “land auction” model.
The government’s accelerated release of multi-storey building land will have an impact on the logistics industry, providing more storage space and logistics facilities. The launch of the “land auction” model will also help the logistics industry to carry out planning and design while waiting for the brownfield land to be flattened, saving waiting time and accelerating the completion of logistics properties, thus promoting development.
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