Chief Executive in Council approves provision of land resources to Urban Renewal Authority to take forward redevelopment programmes
The Government announced today (June 6) that in order to provide additional financial support to the Urban Renewal Authority (URA) to enhance its cashflow, so that the URA can continue to take forward its commenced redevelopment projects in an orderly manner, the Chief Executive in Council approved granting a site at Bailey Street, Hung Hom (the Bailey Street Site), and a site in Tseung Kwan O Area 137 (the TKO Site) to the URA by private treaty at nominal premium of $1,000 for a term of 50 years from the date of execution, on the understanding that the two sites would be rezoned for residential use through statutory town planning procedures in due course.
The Secretary for Development, Ms Bernadette Linn, said, "As an important partner of the Government in urban renewal, the URA has been adopting a district-based approach in planning and taking forward redevelopment projects over the past years to avoid 'pencil' block development, inject holistic planning into urban redevelopment, and enhance liveability. Meanwhile, redevelopment projects of larger scale involve huge acquisition costs. Coupled with the sluggish property market in recent years, the URA's projects have been subject to the 'buy-high-sell-low' situation (i.e. acquiring properties at the market peak but tendering at low price or even a failed tender), thus affecting its cashflow."
The URA has taken a number of measures to maintain a financially healthy portfolio, such as adjusting the pacing of taking forward redevelopment projects, obtaining external financing through bond issuance and loan facilities, enhancing the market attractiveness of project tenders, and critically controlling its operating expenditure. Notwithstanding, according to the URA's latest assessment, in the event that the property market continues to falter and the results of project tenders are not as expected, the URA will have to secure additional financial support in order to maintain the redevelopment momentum, including making acquisition offers for the commenced redevelopment projects.
"The Government has been providing financial support to the URA to enable it to carry out redevelopment and fulfil other statutory missions in a self-financing manner. Granting land at nominal land premium has long been one of the major government support measures for the URA. For example, the Government will grant urban renewal sites to the URA at nil land premium, as well as, in recent years, Government, Institution or Community (G/IC) sites in the vicinity of individual urban redevelopment projects to increase the overall development potential. Granting the two sites to the URA is along the same direction that helps the URA to fulfil its urban renewal mission," Ms Linn continued.
Ms Linn added, "The granting of the two sites to the URA could also benefit the community. Specifically, the Bailey Street Site can create synergy with the URA's cluster of redevelopment projects in the Kowloon City area. As for the TKO Site, the original housing development of which has been deferred due to re-prioritisation of the Hong Kong Housing Authority's (HKHA) projects, granting the site to the URA would optimise the use of the land resources in a timely manner."
The Bailey Street Site, with a net site area of 7 610 square metres, was reserved for school development. Upon review, the Education Bureau considered that this site can be released for other uses. Granting the Bailey Street Site to the URA could result in optimised land use and enhanced planning gains for the area by accommodating G/IC facilities to meet the district shortfall, enhancing connectivity of the area, and amalgamating the adjacent Hoi Sum Park to provide public open space. The proposed total gross floor area (GFA) will be about 68 490 sq m with a plot ratio of 9.
The TKO Site has a net site area of about 9.15 hectares. The proposed total GFA is about 713 700 sq m with a plot ratio of 7.8. While the residential site concerned was reserved for public housing development, having considered the re-prioritisation of the HKHA's projects and with sufficient land supply for public housing over the next 10 years, the granting of the site to the URA will have no impact on the overall public housing supply target for the current 10-year period (from 2025-26 to 2034-35). Furthermore, there are still about 42 ha of land reserved for housing development in Tseung Kwan O Area 137, which can be flexibly deployed for public or private housing use. The Government will take into account the market needs and adjust the public-to-private housing ratio in the area in a timely and appropriate manner to provide flexibility in the mix of housing planned for the longer term.
The Executive Council has set clear requirements for this land grant, including (i) requesting the URA to make good use of the two sites as its assets to enhance its financing and borrowing capacity to maintain the momentum of urban redevelopment in a financially prudent manner in the next few years including making acquisition offers to the six commenced redevelopment projects (Note) between now and 2027-28. Moreover, with the land sales revenue to be generated from the two sites for the URA in the future, the URA should make good use of the additional and other income and re-prioritise yet-to-be-commenced projects in light of its financial position; and (ii) the URA should work with the Government to review and refine its operating and financing model that can enable it to undertake urban redevelopment in a financially sustainable manner irrespective of market ups and downs. Furthermore, the URA should advise how to step up building rehabilitation to extend the service life of aged buildings and reduce the immediate need for redevelopment. The URA should come up with specific recommendations within 2026.
For details of the above, please refer to the Legislative Council Brief issued today.
Note: These six commenced redevelopment projects are Kau Pui Lung Road/Chi Kiang Street Project, Ma Tau Wai Road/Lok Shan Road Project, Queen's Road West/Kwai Heung Street Project, Ming Lun Street/Ma Tau Kok Road Project, To Kwa Wan Road/Ma Tau Kok Road Project and Sai Yee Street/Flower Market Road Project.
Keynote address by PSITI at HKTDC Hong Kong Electronics Fair (Autumn Edition) 2026 Future Industries Zone Opening Ceremony
Following is the keynote address by the Permanent Secretary for Innovation, Technology and Industry, Mr Kevin Choi, at the HKTDC (Hong Kong Trade Development Council) Hong Kong Electronics Fair (Autumn Edition) 2026 Future Industries Zone Opening Ceremony today (October 13):
Distinguished guests, ladies and gentlemen,
Good morning. It is a pleasure to join you all at the opening of the Future Industries Zone at the Hong Kong Electronics Fair (Autumn Edition) 2026.
Electronics remains central to Hong Kong's economy. Electronic products accounted for close to 80 per cent of Hong Kong's total exports in the first eight months of this year. Yet the significance of the industry goes beyond trade figures. Electronics is the foundation of artificial intelligence, advanced computing, smart manufacturing, healthcare technologies and many of the industries that will shape our future.
That is why the launch of the Future Industries Zone is timely. A new generation of technologies is creating new industries and transforming established ones. The challenge is no longer confined to making a scientific discovery. We must also turn that discovery into a product, validate it in a real setting, establish a viable production process and bring it to the market.
This is the essence of new industrialisation, and a practical way to develop new quality productive forces. It connects technological innovation with industrial innovation, so that research can create real economic value. For hardware companies in particular, transforming a prototype into a commercial product involves design for manufacturability, rigorous testing, certification and supply chain management, demanding clear validation before meeting operational needs.
The Future Industries Zone responds directly to these needs. It brings together future microelectronics, future computing, future marine and quantum technology, future manufacturing and future wellness. More importantly, it places researchers and technology developers alongside manufacturers, users, investors and industry partners. This can help close the gap from research and development to design for manufacturing and mass production, while strengthening the wider electronics supply-chain ecosystem.
The direction of the Zone is closely aligned with national and Hong Kong development priorities. This year marks the beginning of the National 15th Five-Year Plan. The Plan calls for deeper integration between technological and industrial innovation, the development of a modern industrial system and the fostering of new quality productive forces according to local conditions. It also supports Hong Kong in developing into an international innovation and technology centre.
Hong Kong's First Five-Year Plan and this year's Policy Address translate these national priorities into concrete action for Hong Kong. Building on our strengths in basic research, international connections and professional services, and the Greater Bay Area (Guangdong-Hong Kong-Macao Greater Bay Area)'s strong manufacturing capabilities and complete supply chains, Hong Kong is developing a new industrialisation system with three major innovation and technology parks and five research and development institutions as its backbone.
A central task is to strengthen the path from research and development to testing, pilot production, industrial application and market development. Pilot production is particularly important. It allows companies to verify whether a technology can be manufactured reliably and at the required quality, and to resolve technical problems before moving to full-scale production.
In microelectronics, the Hong Kong Microelectronics Research and Development Institute is establishing pilot lines for third-generation semiconductors. They will support research, proof-of-concept fabrication, pilot production and low-volume production. The Institute will also take the lead in operating the first national manufacturing innovation centre to be established in Hong Kong, bringing together resources from Hong Kong, the Chinese Mainland and overseas, including local enterprises and start-ups participating in the Zone today, to strengthen our microelectronics ecosystem and accelerate commercialisation.
Technology needs to be tested in real operating environments. This is another area where the Future Industries Zone can make a practical contribution. Through scenario-based displays, enterprises and start-ups can show how their hardware and software solutions work, engage prospective users and obtain direct feedback. These are not merely product showcases. They give companies a valuable opportunity to validate and improve their technologies with reference to real needs.
This year's Policy Address also supports the Hong Kong Science and Technology Parks Corporation in exploring the establishment of the Hong Kong Innovation and Technology Application Scenario Promotion Centre. By helping technology companies identify opportunities for validation and adoption in public services and different industries, the proposed centre will enable more promising solutions to move from demonstration to wider use.
The Top 100 Future Industries Pioneer List adds another important dimension. By identifying promising enterprises in the frontier fields featured at the Zone, it gives them greater visibility and creates opportunities to connect with technology partners, manufacturers and potential users. This complements the Government's efforts to support enterprises through various policy initiatives such as the $10 billion New Industrialisation Acceleration Scheme in establishing smart production facilities in Hong Kong.
The Zone also provides a link to the international technology community. The debut of CES Asia Unveiled Hong Kong, made possible through the HKEIA (Hong Kong Electronic Industries Association)'s partnership with the Consumer Technology Association, brings an internationally recognised technology platform to the Fair. The pitch competition offers high-potential start-ups an opportunity to present their technologies, while the winning company will receive complimentary exhibition space at CES 2027 Eureka Park.
This international exposure is valuable, but it rests on the same foundation: strong technology, effective validation and the ability to turn an idea into a product. By combining these elements in one place, the Future Industries Zone can help companies progress further along the path from research to industrial application, and support the formation of future industry clusters in Hong Kong.
The Government will continue to work with industry, universities and research institutions to strengthen that path. The HKEIA's collaboration with the Government and the industry demonstrates how the wider innovation and technology ecosystem can work together.
I thank theHKEIA, HKTDC and all partners for creating this new platform. I look forward to seeing the Future Industries Zone foster practical collaboration, accelerate the commercialisation of promising technologies and contribute to Hong Kong's new industrialisation and technology development.
I wish the Future Industries Zone and the Hong Kong Electronics Fair every success, and all of you a productive and rewarding event. Thank you.
Source: AI-found images
