To facilitate the launch of the Bonus Plot Ratio Pilot Scheme in September, the Planning Department, Lands Department and the Buildings Department under the Development Bureau issued a joint practice note on Wednesday detailing the requirements and arrangements.
Secretary for Development Bernadette Linn Hon-ho said that over the past 10 years, about 80 percent of new residential units from redevelopment projects came from private development, but acquisition costs and development parameter constraints have kept market participation relatively inactive.
She pointed out that, with buildings aged 50 years or older increasing by more than 500 per year, and will even grow by an annual average of over 700 blocks in the coming 15 years, it is necessary to adopt innovative and bold policies to drive market redevelopment and address the problem of building aging at a much faster pace than redevelopment.
The authorities pointed out that under the pilot scheme, developers who commit to demolishing residential buildings located in seven old districts, aged 50 years or above, with site areas of no less than 700 square meters, and redeveloping them for residential use, will be offered an additional 20 percent premium-free gross floor area as a bonus
The scheme will run for five years until Aug 31, 2031. The Lands Department will accept related lease modification applications during the period and impose lease conditions, including redevelopment deadlines and penalties, to ensure developers complete the work on time. The Development Bureau will assess the effectiveness in due course and, depending on market response, adjust details as needed, including considering whether to extend the pilot scheme's duration.
