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Figure 7. Average site area (sf) by selected former use of sites, 2012 and 2015
Note : Including non-residential sites.
Source: Our Hong Kong Foundation.
As we have emphasised in our first Research Report, land with
a larger site area will not only generate economies of scale by lowering
average costs for large-scale developments, it is also conducive to a more
comprehensive and optimal planning. For instance, it can more easily
accommodate development of large-scale commercial and residential
complexes with adequate transport facilities such as transport terminals
and car parks to be placed near residential areas. On the contrary, in
addition to being unable to enjoy the benefits above, the shapes of
smaller sites are usually unconducive to development, indirectly raising
construction costs, which will ultimately be reflected on housing prices.
The analysis above sheds light on the wider problem of the lack of
a land reserve in Hong Kong, which will be discussed in-depth in Chapter 4.
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