Lower threshold push for old buildings

The Development Bureau is proposing that developers be allowed to file applications with the Lands Tribunal for old buildings to be sold for redevelopment through a lower statutory threshold of consolidated ownership.

It will gazette a bill on Friday to reduce the thresholds for buildings aged 50 years or above from the existing 80 percent to 70 or 65 percent depending on their age groups and locations.

A spokesman said the government has long supported both the public and private sectors to carry out urban renewal, with 75 percent of new flats from all redevelopments over the past 10 years coming from private projects.

Aiming to expedite the pace, it has selected some districts as ones with more pressing redevelopment needs.

The first batch of designated districts include Cheung Sha Wan, Kowloon City, To Kwa Wan, Mong Kok, Sai Ying Pun, Sheung Wan, Tsuen Wan, Wan Chai and Yau Ma Tei.

The threshold for buildings aged between 50 and 60 years within these districts is proposed to be lowered to 70 percent, while that of buildings aged 60 years or above will be lowered to 65 percent.

The bill also proposes to lower the threshold for industrial buildings aged 30 years or above located in non-industrial zones from 80 to 70 percent.

Two or more adjoining lots, even with no common staircases connecting the buildings on them, can be consolidated for joint redevelopment.

But they need to share a common boundary, and meet a minimum threshold of 65 percent and a minimum age of 50 years for each lot.

To further streamline the legal process for compulsory sales, the bill proposes that for buildings aged 50 years or above that have met with no objections from all minority owners, owners will be exempted from the need to submit an expert report to justify the need for redevelopment, shortening the processing time.

To assist minority owners, a dedicated office will be set up next year to enhance publicity and education, offer advisory service and counseling and relocation support, and provide independent valuation reports.

But Liber Research Community member Chan Kim-ching said the government is using public power to help developers seize properties, resulting in "developers becoming the biggest winners."

Lowering the thresholds, he said, will aggravate the deterioration of the quality of buildings in old districts as well as lowering the quality of life of residents, and indirectly push up rents for subdivided units.