Sale law reform for old buildings up for reading

The Development Bureau expects an amendment bill to simplify the compulsory sale for redevelopment mechanism to be passed mid-next year and support for homeowners to be enhanced, says Secretary for Development Bernadette Linn Hon-ho.

Subdivided flat tenants fear they would be homeless after the statutory threshold of compulsory sale is lowered, paving the way for developers to acquire their flat.

Writing on her blog, Linn said the bill - which will enable developers to redevelop the building of at least 50 years old after acquiring 65 percent of it, down from the current 90 percent - will go through its first reading on Wednesday.

"The bureau is expecting the bill to be passed by mid-next year, and we'll roll out measures to enhance assistance given to homeowners," Linn said.

"The government's strategy has always been carrying out maintenance on old buildings and redeveloping those where maintenance is not cost-efficient, which will solve the hidden threats posed by these old buildings."

Linn cited assistant secretary in urban renewal Henry Wong Yat-hang as saying the government would improve the compulsory sale for redevelopment mechanism in four directions. That includes lowering the threshold of triggering a compulsory sale in districts with more urgent needs, including Cheung Sha Wan, Ma Tau Kok and Mong Kok.

The government will also facilitate applications for contiguous land plots, simplify legal procedures for compulsory sale and enhance the assistance for homeowners affected by the compulsory sale, according to Wong.

The bill has sparked worries among subdivided flat residents. A woman, wishing not to be named, expressed fears that she would be forced out of her subdivided unit inside a 60-year-old building in To Kwa Wan.

Over 80 percent of the building was once bought by a developer, which was not enough to trigger compulsory sale before the amendment but will be more than sufficient under the amended bill.

"People told me that this building was nearly on compulsory sale, which was initiated by private developers, not the government, as private developers will not provide you with compensation. I would sometimes ask the security guard whether my flat has been sold," she said.

The woman, who has been living in the subdivided flat for four years, said it would be difficult for her to rent a subdivided flat in the same district as she expects old buildings there will face the same fate.

"The price of subdivided flats may go higher when there are fewer flats left, which will make it harder for me to rent," she said.

Kowloon City district councillor Jimmy Lam Pok urged the government and developers to offer assistance to subdivided flat residents.

"Developers with a good conscience should take social responsibility, although it is not stated in black and white. They can take reference with the Urban Renewal Authority to set up a district team, or provide subsidies to help those affected by the compulsory sale," Lam said.