Hong Kong adds security law provisions to land sales terms -media

Sun Hung Kai Properties

13/02/2023 08:20

HONG KONG, Feb 13 (Reuters) - Hong Kong authorities
began to include applicable provisions of the National Security
Law in the terms of land sales and short-term leases in the Asia
financial hub, the Hong Kong Economic Times reported on Monday,
citing government information. 
    The Lands Department's move empowers the government to
disqualify bids and suspend short-term leases due to national
security reasons, the report said, adding the terms had been
included in the latest land sales.
    That sent Hong Kong property stocks  .HSNP  down as much as
4.9% to the lowest in six weeks, compared to a 0.1% slip in the
benchmark Hang Seng Index  .HSI .
    The Lands Department did not immediately response to
Reuters' email request for comment.
    "It suggests that developers will be even more cautious in
putting a bid in land sale," said Steven Leung, a sales director
at UOB Kay Hian.
    In January, the Lands Department said all four tenders
received for the sale of a residential site in Stanley on Hong
Kong Island had been rejected as their tendered premiums did not
meet the government's reserve price for the site. 
    Hong Kong property groups CK Asset  1113.HK , Hang Lung
Properties  0101.HK , Sun Hung Kai Properties  0016.HK ,
Henderson Land  0012.HK  and New World Development  0017.HK 
fell between 0.8% and 6.7% 
    Private home prices in the city, one of the most
unaffordable territories in the world, fell 15.6% in 2022 in the
first annual drop since 2008.
    The National Security Law, which punishes subversion,
collusion with foreign forces and terrorism with up to life in
prison, was imposed by Beijing on the former British colony in
2020.
    Western governments and rights groups have criticised the
law for causing the deterioration of freedoms and the rule of
law. Hong Kong and Chinese authorities say it is necessary to
restore stability after anti-government protests in 2019.
 (Reporting by Jessie Pang and Donny Kwok; Editing by Christian
Schmollinger)
 ((donny.kwok@thomsonreuters.com))