Land and Development Advisory Committee convenes
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The Development Bureau informed the Land and the Development Advisory Committee (LDAC) at its conference today (July 27) on the 2 brand-new procedures to incentivise city renewal. The significant plans of the steps are as follows:
( 1) The Bonus Plot Ratio Pilot Scheme: If a designer devotes to take down a structure with domestic components in the 7 designated locations (Note), whose structure age reached 50 years or above with the website location not less than 700 square metres, and redevelop it into domestic usage, an extra 20 percent premium-free gross flooring location (GFA) will be offered as benefit. The designer can pick to send preparation application to the Town Planning Board (TPB) to straight make use of the perk plot ratio in kind for in-situ redevelopment. The designer can likewise select to equate the bonus offer plot ratio into land premium worth for balancing out the land premium payable for in-situ redevelopment or any other land deals in the Northern Metropolis and other parts of the area. To streamline the execution treatments, the Government will utilize basic rates to compute the premium worth of the reward plot ratio. All in-situ redevelopment jobs signing up with the Pilot Scheme are needed to be effected by ways of lease adjustment to make sure prompt conclusion of the redevelopment task. The reward plot ratio will not impact other existing GFA concession procedures. Topic to market reaction, the Development Bureau will examine the efficiency of the Pilot Scheme, in addition to present changes where needed and think about whether the duration of the Pilot Scheme will need to be extended; and
( 2) The cross-district transfer of plot ratio (TPR) plan: It is to unwind the existing plans of TPR within the exact same district, enabling cross-district transfer of plot ratio from the sending out websites to other locations throughout the area, consisting of the New Development Areas, so regarding minimize the advancement density in the metropolitan location. It is likewise to extend the geographical protection of sending out websites from Mong Kok and Yau Ma Tei to the staying 5 designated locations (Note), in addition to eliminating the limitation of 2 getting websites and decreasing the website location requirement of getting websites from 1 000 sq m to 700 sq m. To supply extra rewards, if the sending out website is utilized for designated usages benefiting the regional neighborhood, based on the TPB’s approval, specific premium-free GFA might be offered within the sending out websites as bonus offer GFA, in addition to the complete transfer of the plot ratio and GFA from sending out websites in order to support the on-going management and upkeep of the sending out website. The premium evaluation plan will be unwinded to permit the land premium evaluation for the sending out websites and getting websites to be integrated. All cross-district TPR propositions will need submission of preparing applications to the TPB, which will carry out a gatekeeping function in guaranteeing the transfer will not trigger negative effect to the surrounding environment.
The Secretary for Development, Ms Bernadette Linn, stated “At present, the pace of building ageing in Hong Kong far exceeds that of redevelopment by the Urban Renewal Authority (URA) and the private market. In the past decade, the number of buildings aged 50 years or above increased by about 510 per year, while on average only 160 buildings were demolished by the URA and the private sector. And not many redevelopment projects in old districts are financially viable these days. In this regard, the Government has to adopt a new mindset and bold policy thinking to give a stronger policy push to encourage the private sector to participate in urban renewal, with a view to expediting redevelopment and rescuing urban decay.”
Members were extremely helpful of the 2 brand-new procedures proposed by the Government. They concurred that the Bonus Plot Ratio Pilot Scheme would offer rewards and improve the monetary practicality of redevelopment tasks in old districts, which the cross-district TPR plan might even more incentivise the marketplace to utilize the preparation tool to accelerate city renewal.
Members thought about that it was time to offer bolder and more powerful push to promote city redevelopment by the URA and the marketplace. If the reaction of these steps is favorable, members anticipated that the Government might extend the Pilot plan and think about unwinding the application plans where suitable. Provided the steps would include a great deal of technical application information, Members would like the Government to set out such information in the application standards of the pertinent procedures, so regarding help with application.
The above are 2 of the procedures revealed in the Chief Executive’s 2025 Policy Address to speed up metropolitan renewal. Having actually sought advice from appropriate stakeholders and taken into consideration their remarks, the Government has actually created the execution plans. The LDAC today generally talked about the execution information of the appropriate propositions.
The Government will release a joint practice notes for releasing the Bonus Plot Ratio Pilot Scheme and modify the TPB Guidelines on TPR after getting the TPB’s recommendation, with a view to introducing the 2 plans in the 3rd quarter of 2026.
Keep in mind: The 7 designated locations describe Cheung Sha Wan (the very same Outline Zoning Plan (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.