Govt to explore possible land allocation in New Development Area to boost urban renewal

The government will explore more favorable conditions for old district redevelopment projects, including the allocation of land in the New Development Areas (NDAs) for the construction of reception estates for tenants, according to the Secretary for Development Bernadette Linn Hon-ho.

Her statement came as lawmakers expressed concern over the recent delays in several redevelopment projects owing to the decreased enthusiasm of private developers.

In a written response to the legislature on Wednesday, Linn stated the department would study the feasibility of cross-district transfer of plot ratios, aiming to transfer the residual plot ratios of redevelopment projects in old districts for use in the NDAs.

According to Linn, the preliminary proposal for the measure is expected to be introduced in the first half of this year to increase market incentives for participation in urban renewal projects.

Moreover, the Urban Renewal Authority (URA) will adopt a dynamic management strategy to adjust project planning and advancement based on market conditions and building status.

While highlighting the self-developed residential projects as a potential avenue for development, Linn noted the current URA strategy would continue to prioritize collaboration with developers through land sale programs, considering cash flow constraints. 

Linn pointed out the Land (Compulsory Sale for Redevelopment) (Amendment) Ordinance 2024 passed last December, which included changes such as lowering the threshold for compulsory sale applications and facilitating applications for multiple adjoining lots, was to encourage developer participation.

Regarding building rehabilitation, Linn indicated that the urban renewal strategy includes a dual-track approach of both rehabilitation and redevelopment, mentioning that the government will propose amendments to the Buildings Ordinance in response to public feedback, with the goal of presenting it in early 2026.

Linn added that if proposals to expedite building inspections and repairs are adopted, issues related to aging structures and the need for redevelopment will be addressed.