CE’s speech in providing “The Chief Executive’s 2025 Policy Address” to LegCo (10)
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Chapter IX
Help With Stable Living in a Caring and Inclusive Society
206. Improving individuals’s income is my essential policy concern. Given that taking workplace, the current-term Government has actually been making every effort to develop a lively economy and promote advancement. These efforts intend to boost our economy’s long-lasting competitiveness, produce strong development momentum, and lay a strong structure for enhancing the wellness of our individuals– eventually increasing their sense of joy and wellness. This chapter on income is the longest in the Policy Address, covering 9 locations that are carefully connected to the daily lives of Hong Kong homeowners.
(A) Increase Housing Supply and Enrich the Housing Ladder
207. Securing the standard real estate requirements of individuals of Hong Kong is the leading concern of our governance. Given that presuming workplace, I have actually reinforced real estate defense for the grassroots by speeding up the building of PRH, introducing the ingenious LPH and punishing PRH occupancy abuse. With the supply of PRH constantly increasing, the Government is now well placed to more help the grassroots in accomplishing own a home. We will increase the supply of flats under the Home Ownership Scheme (HOS) and the Green Form Subsidised Home Ownership Scheme (GSH), optimise the sale and alienation limitation plans, assist more PRH occupants understand own a home, while allowing the owners of subsidised sale flats (SSFs) participate in the personal real estate market. With the real estate ladder enriched, we can support homeowners throughout all strolls of life to live and work gladly.
Boost Public Housing Supply
208. In the 5 years beginning with 2026-27 onwards, the general public real estate production (consisting of LPH) will reach 189 000 systems, about 80% greater than when I took workplace. 3 years back, PRH candidates needed to wait 6.1 years usually before they were provided PRH. With our efforts over the previous 3 years approximately, the Composite Waiting Time for Subsidised Rental Housing has actually been reduced by an entire year to 5.1 years, and we are moving closer to the target of decreasing it to 4.5 years in 2026-27. Partitioned system (SDU) homes can enhance their living conditions by moving into PRH or LPH systems one year previously, while conserving about $36,000 or $50,000 in lease usually annually respectively.
209. 3 years back, I revealed the launch of 30 000 LPH systems. About 10 000 of them will be finished for consumption by the end of this year. The staying 20 000 systems will be finished in the coming year and a half.
210. The Basic Housing Unit regulative routine, created to remove second-rate SDUs, is being scrutinised by the LegCo. Topic to passage of the expense, the routine will be carried out in March next year.
Redevelop Public Rental Housing Estates
211. The Hong Kong Housing Authority (HKHA) will reveal redevelopment prepare for Ma Tau Wai Estate and Sai Wan Estate this year. A research study will likewise be performed on the redevelopment of Model Housing Estate.
Improve the Housing Ladder
212. With the boost in public real estate supply, we will take determined actions to assist individuals of Hong Kong accomplish own a home. They consist of the 6 steps listed below:
(i) Given the supply of HOS flats in the next 5 years is anticipated to be about 50% more than the five-year supply when the current-term Government took workplace, chances for both Green Form (GF) and White Form (WF) candidates to buy HOS flats will increase considerably. On the basis that the supply of HOS flats are considerably increasing, we will increase the ratio of quotas in between GF and WF from 40:60 to 50:50 to help more PRH renters to end up being owners, while at the very same time move the initial PRH systems to Waiting List candidates, benefitting both celebrations at the exact same time.
(ii) To increase chances for WF candidates to buy SSFs with unsettled premium in the secondary market, the HKHA will increase the quota of the White Form Secondary Market Scheme (WSM) by 1 000 to 7 000, beginning with the next WSM workout. Half of the 1 000 extra quota will be designated to young household and one-person candidates listed below 40.
(iii) To avoid forfeit of the WSM quota due to the fact that of individual choices, the variety of approval letters provided by the HKHA will be appropriately greater than the quota set under the WSM workout, making sure that the quota for flat purchases can be totally used, in order to make every effort to fulfill the expectations of the buyers.
(iv) We will increase the ratio of bigger systems in HOS and GSH jobs in reaction to market requirements.
(v) We will unwind the alienation constraint duration of brand-new flats for sale from 15 years to 10 years to motivate status seeking. This step will apply beginning with the next HOS and GSH sale workouts.
(vi) We will introduce the “Flat-for-Flat Scheme for Elderly Owners” of HKHA’s SSFs, permitting those who have actually reached the age of 60 and owned their flat for 10 years or more to buy a smaller sized flat or a flat in a more remote location after offering their initial one in the secondary market with premium unsettled. In doing so, they can get extra money to cover their living expenditures, while city or bigger flats can be launched for households in requirement to get.
213. The HKHA and the Hong Kong Housing Society will present a pilot plan, enabling those who have actually owned an SSF for 10 years or more to let their flats with unsettled premium to qualified WF candidates after paying pertinent costs, based on a quota of 3 000.
Personal Housing Supply
214. According to the Long Term Housing Strategy, the supply target for personal real estate in the coming years is forecasted to be 126 000 systems. The Government will have enough land to satisfy the need in the next 10 years, and will present such land to the marketplace in an organized and practical way. Federal government land sale, other sources of personal real estate land supply consist of train residential or commercial property advancement and Urban Renewal Authority (URA) jobs, as well as personal advancement tasks.
(B) Land Development
215. The Government needs to keep a sufficient supply of land to satisfy the need for significant advancement jobs, long-lasting financial advancement and the neighborhood’s real estate requirements. Land reserve resembles bank cost savings because both are conserved for usage when required. We will sustain efforts to produce and maintain control over the supply of land. In parallel, we will enhance the performance of land production and lower building expenses by enhancing approval procedures, optimising administrative treatments, reinforcing internal cooperation, using innovation, examining appropriate requirements and more, so regarding secure public interests and fulfill advancement requirements.
Construct Land Reserve
216. In the next years, the Government will prepare around 2 600 hectares of “spade-ready sites”¹³. Apart from fulfilling the advancement requires, this would likewise supply the essential space for the Government to develop a healthy land reserve.
Decrease Construction Costs
217. We will continue to improve statutory treatments and administrative workflows. Appropriate procedures consist of:
(i) Simplify works approval treatments, set clear efficiency promises, and improve co-ordination amongst pertinent departments on vetting procedures to accelerate approval.
(ii) The Housing Department (HD) will establish a Project Facilitation Office to co-ordinate departments in speeding up the conclusion of public real estate tasks. The Housing Bureau (HB) has actually carried out a brand-new management technique, under which the target time for job conclusion is set to trigger the sped up conclusion of different task phases.
(iii) Leverage innovations. Next year, the DEVB will release a Project Cost Management Platform, developing a market value database and using AI innovation to evaluate, for instance, previous federal government job expense information, to guarantee higher cost-effectiveness in future job styles. The HD has actually likewise embraced the self-developed Building Information Modelling (BIM)-allowed Systematic Approach to Foundation Design, which immediately produces styles to even more minimize expenses.
(iv) The Building Technology Research Institute will continually examine the building and construction requirements and requirements of federal government tasks. In addition, concerning the approval of structure products for public real estate, the HB will check out the accreditation of requirements of more areas.
(v) The Government will unwind the gross flooring location (GFA) exemption plan for parking lot in personal advancements by eliminating the obligatory requirement of building underground parking lot as a condition of exemption, and giving complete GFA exemption if designers construct no greater than 2 floors of above ground parking lot.
(vi) The DEVB will carry out main procurement on a trial basis in the very first half of next year, piloting in the procurement of frequently utilized products consisting of steel support and Modular Integrated Construction (MiC) modules, in order to conserve expenses. The HB will likewise pilot the batch procurement of incorporated modules of MiC approach next year. In addition, the HB has actually developed a database of basic structure products, covering typically utilized products such as aluminium windows and partition walls, to accelerate the approval procedure.
Release Industrial Land in Urban Areas
218. Because 2000, the Planning Department has actually carried out 5 rounds of Area Assessments of Industrial Land in the Territory, and a few of the commercial land have actually been rezoned for other usages such as domestic and company usages. The Government will begin a brand-new round of research study this year and advanced suggestions next year, consisting of the method forward for the Revitalisation Scheme for Industrial Buildings.
Urban Renewal with a New Mind-set
219. Welcoming a brand-new mind-set, we will check out using recently established land to take forward metropolitan renewal. Pertinent steps consist of:
(i) Relax the existing plan for the transfer of plot ratio within the very same district to permit the cross-district transfer of unutilised plot ratio from redevelopment tasks to other districts and even NDAs, to improve market rewards for redevelopment.
(ii) Reserve 3 websites in Kwu Tung North and Fanling North NDAs in the Northern Metropolis for the URA to build brand-new structures, which will be utilized as replacement flats under the “Flat-for-Flat” Plan in the future.
(iii) Suitably increase the plot ratio of personal redevelopment tasks, on a pilot basis, for the 7 designated locations ¹ with more pushing redevelopment requirement, permitting the increased plot ratio to be moved for utilisation in the Northern Metropolis or other districts, or to be utilized for balancing out the premium payable for bidding land, lease adjustment in other tasks or in situ land exchange.
Improve Construction Safety
220. The Government will modify the Buildings Ordinance next year to improve the deterrent impact versus non-compliance with statutory notifications or orders and severe unauthorised structure works, and reinforce guideline of professionals.
(C) Enhance Transport and Commuting Convenience
Promote the Transport Strategy Blueprint
221. The Transport and Logistics Bureau will release the Transport Strategy Blueprint by the end of this year to lay out instructions and particular steps for transportation advancement.
Smart and Green Mass Transit Systems
222. We will quickly welcome tenders for the clever and green public transportation system task in Kai Tak, and will welcome tenders for the tasks in East Kowloon and the Hung Shui Kiu/Ha Tsuen NDA next year.
Speed up the Introduction of Mass Transit Systems
223. To accelerate the intro of brand-new public transportation systems from around the globe, the Government will develop a regulative structure appropriate to various system innovations and operators, and present an expense next year.
Promote Autonomous Vehicles
224. The Government developed a regulative structure for self-governing lorries (AV) in 2015. 3 locations will be authorized this year for AV trials, focusing on AV cross-district travel and connections to other modes of transportation, to speed up the big scale advancement of driverless self-governing driving in Hong Kong, accelerating its shift to industrial operations, and assisting in the market’s growth to overseas, especially right-hand-drive markets, utilizing Hong Kong as the platform.
Manage Ride-hailing Services by Legislation
225. The concern of managing ride-hailing services in Hong Kong has actually continued for over 11 years. The current-term Government is identified to solve this problem, making every effort to pass the legislation on managing the services before the prorogation of the current-term LegCo, with a view to protecting the general public’s travel security.
¹³ “Spade-ready sites” describe websites that have actually gone through treatments consisting of rezoning, clearance and development, and are all set for beginning of works.
1ST The Land (Compulsory Sale for Redevelopment) (Amendment) Ordinance 2024, which entered impact in 2015, defined 7 locations with more pushing requirement for renewal based upon the locations covered by the OZPs, consisting of Cheung Sha Wan (the exact same OZP covering likewise Sham Shui Po), Ma Tau Kok (covering Kowloon City and To Kwa Wan), Mong Kok, Sai Ying Pun and Sheung Wan (covered by the very same OZP), Tsuen Wan, Wan Chai and Yau Ma Tei.
(To be continued.)