Policy Address

Enhance the Efficiency of Urban Renewal

102. In view of urban decay and ageing buildings, we will speed up redevelopment and step up the maintenance of aged buildings. We will:

  1. fully embrace the "planning-led" redevelopment approach – The URA is conducting planning studies for Tsuen Wan and Sham Shui Po, with the comprehensive urban renewal master plans and restructuring proposals expected to be ready by phases from the second half of 2024. We are also implementing the recommendations from the District Study for Yau Ma Tei and Mong Kok, permitting interchangeability between the domestic and non-domestic plot ratios of selected areas, removing the plot-ratio restriction of the commercial zone along Nathan Road, and rezoning certain character streets to increase incentives for redevelopment. In the coming five years, the URA will commence redevelopment projects of the "Nullah Road Urban Waterway" in Mong Kok East and the "Street Consolidation Areas" in Yau Ma Tei South;

  2. enhance URA's financial capability – To enable the URA to cope with future financing demand, the Government granted approval in mid-2023 for raising its borrowing limit from $6 billion to $25 billion. We will also provide suitable land for the URA at nominal land premium to enhance the viability of the concerned redevelopment projects and increase the usable resources available to URA;

  3. adopt a more target-oriented approach in lowering the compulsory sale application thresholds – Last year, we proposed to lower the compulsory sale application thresholds from 80% of ownership to 60% to 70% with reference to the building age. Taking into account stakeholders' views, the Government considers that apart from the building age, the need for redevelopment of the district should also be taken into account in determining the applicable threshold. As a general principle, lower thresholds should be adopted for older buildings in districts with more pressing need for redevelopment. The Development Bureau (DEVB) will elucidate the revised proposal and introduce an amendment bill by the end of this year; and

  4. explore a new mechanism for large-scale redevelopment projects – We will embark on a study this year to explore feasible policy measures to use part of the reclaimed land outside the Kau Yi Chau central business district to facilitate implementation of urban redevelopment projects by the public and private sectors.