The government will reserve three sites in the Northern Metropolis for the Urban Renewal Authority to construct new buildings, which will be used as replacement flats under the "Flat-for-Flat" scheme in the future, Chief Executive John Lee Ka-chiu said.
This is part of his new mindset to explore the use of newly developed land to take forward urban renewal.
Other measures include relaxing the current arrangement for the transfer of plot ratio within the same district to allow the cross-district transfer of unutilised plot ratio from redevelopment projects to other districts or even Northern Metropolis, to enhance market incentives for redevelopment.
Authorities also plan to suitably increase the plot ratio of private redevelopment projects, on a pilot basis, for the seven designated areas with more pressing redevelopment need, allowing the increased plot ratio to be transferred for utilization in the Northern Metropolis or other districts, or to be used for offsetting the premium payable for bidding land, lease modification in other projects or in-situ land exchange.
The seven areas include Cheung Sha Wan (covering also Sham Shui Po), Ma Tau Kok (covering Kowloon City and To Kwa Wan), Mong Kok, Sai Ying Pun and Sheung Wan, Tsuen Wan, Wan Chai and Yau Ma Tei.
Authorities plan to allow an additional gross floor area of up to 20 percent on top of the approved plot ratio for redevelopment projects, targeting buildings over 50 years old with site areas of at least 700 square meters, sources said.
The measure is intended to let developers “offset costs with profits,” thereby increasing incentives for redevelopment, though final approval will still rest with the Town Planning Board, they said.
If developers convert the additional floor space into monetary value to offset land premiums or other fees, the Lands Department would assess the relevant amount based on prevailing land prices, the people said, adding that the scheme is expected to be rolled out in the first half of next year.
