DEVB Implements "Pay for What You Build" Pilot Scheme and Longer-Term Tenancies Arrangements

DEVB implements "Pay for What You Build" Pilot Scheme and longer-term tenancies arrangements

The Development Bureau (DEVB) announced today (May 29) the implementation of two land lease arrangements to facilitate industry development, which are:

• a three-year "Pay for What You Build" Pilot Scheme, which allows lot owners to carry out non-residential development in phases and pay the required land premium as determined according to the actual gross floor area (GFA) constructed in each phase and the "preferred use" proposed by the lot owner; and

• the arrangement of granting longer-term tenancies of up to 21 years to industries with the support of relevant policy bureaux.

A DEVB spokesman said, "The Policy Address last year proposed to introduce flexible land-grant arrangements such as 'Pay for What You Build' and longer-term tenancies, with a view to reducing initial capital outlay and financing costs, thereby enhancing investment incentives in industry sites and accelerating industry development."

"Pay for What You Build" Pilot Scheme

The "Pay for What You Build" Pilot Scheme is applicable to all lease modification and land exchange applications for non-residential developments throughout the territory. It allows lot owners to carry out phased development, provided that the GFA under the initial phase of the development must amount to at least 60 per cent of the total permissible maximum GFA of the whole development and be completed in time in accordance with the building covenant. The land premium will be assessed based on the full market value of the GFA under the initial phase of the development (i.e. at least 60per cent of the total permissible maximum GFA of the whole development) and the "preferred use" of the land proposed by the lot owners. This arrangement supersedes past practices. Land premium assessment will no longer be based indiscriminately on the permissible maximum GFA of the lot and the use having the highest market value as assumed by the Lands Department.

To optimise land use, the Government expects the developer to decide whether to take forward the development of the remaining portion of the total permissible maximum GFA (i.e. 40per cent or less of the total permissible maximum GFA) through another lease modification application within 10 years after the completion of the initial phase of the development, and pay the land premium at the then prevailing full market value in accordance with the use to be stipulated in the modified lease. Considering that under fragmented ownership, it is generally difficult to reach a consensus among various owners on whether to proceed with the remaining development in the future, the Pilot Scheme will also include safeguard measures. The entire site will be subject to alienation restrictions within 10 years after the completion of the initial phase of development, unless approval is obtained from the Lands Department through a lease modification application to develop the remaining portion of the permissible maximum GFA.

If the developer does not come forward for such a lease modification upon expiry of the 10-year period, the Government may, on application from other lot owners in the district, redeploy the development intensity and infrastructure capacity of the remaining balance of the total permissible maximum GFA of the relevant land to other lots in the district. In other words, although the land owner will retain ownership of the relevant land at that time, there is no guarantee that they can continue to develop the remaining portion beyond the 10-year period. Upon the expiry of the 10-year period, the land owner may apply to remove the alienation restrictions through a lease modification.

The Pilot Scheme will start accepting applications on June 1. Details can be found on the website of the Lands Department. (www.landsd.gov.hk/doc/en/practice-note/lpn/PN 2_2026.pdf)

Providing industries with longer-term tenancies of up to 21 years

The DEVB is also introducing a flexible arrangement on the term of government tenancies. For sites provided through short-term tenancies, the Lands Department may, with policy support of the relevant bureaux, provide longer-term tenancies with a total tenure of all the terms not exceeding 21 years. Specifically, tenants can enjoy renewal option upon the expiration of the first fixed term (up to seven years), maximum for two renewals and up to seven years each time, i.e. the longest possible tenancy arrangement is "7+7+7". The individual tenure may be tailor-made pursuant to the needs of the specific industry. Rent review will take place only when the tenancy is due for renewal having regard to the prevailing market rental, which could increase and decrease.

Compared to the current fixed tenancy term of a maximum of seven years only, the new arrangement of up to 21 years provides greater tenure certainty, and the lengthened payback period is also conducive to industry investment. Furthermore, the rent, once adjusted upon a tenancy renewal, will remain unchanged during that tenancy term, which further enhances investment stability. The arrangement for adjusting rent upon tenancy renewal provides flexibility for both the Government and tenants, allowing market conditions to be reflected in a timely manner. The DEVB will continue to discuss with relevant policy bureaux to identify which government sites are suitable for granting under longer-term tenancies to accelerate industry development. Subject to the fulfilment of the policy objective of promoting industry development, both new tenancy and existing tenancy upon renewal may be considered for the longer-term tenancies arrangement. Details of the arrangement can be found in the relevant circular. (www.devb.gov.hk/filemanager/en/content_2398/DEVB General Circular 2_2026.pdf)

The DEVB has consulted the industries and stakeholders on the "Pay for What You Build" Pilot Scheme and the arrangement of providing industries with longer-term tenancies of up to 21 years. They have expressed support for these two initiatives.

The Development Bureau (DEVB), Photo source: reference image

DH reminds public to take precautions against heat-related illnesses during very hot weather

The Centre for Health Protection (CHP) of the Department of Health (DH) today (May 30) reminded members of the public to take appropriate precautions against heat-related illnesses, such as heat cramps, heat exhaustion and heat stroke, during very hot weather.

In a high-temperature environment, excessive sweating and difficulty in heat dissipation can cause stress to the body. Members of the public should take the following precautions:

Hydrate in a timely manner to prevent dehydration;

Wear light-coloured, loose-fitting and breathable clothing to minimise heat absorption and facilitate perspiration and heat dissipation;

Keep indoor areas well ventilated and maintain appropriate temperature and humidity, e.g. by opening windows or using a fan or air-conditioning;

Avoid strenuous exercise and prolonged activities such as hiking or trekking;

Arrange outdoor activities in the morning or the late afternoon, if possible, and bring enough water; and

Avoid beverages containing caffeine, such as coffee and tea, as well as alcoholic beverages, which may speed up water loss through the urinary system.

In addition, infants and children, the elderly, pregnant women, individuals with chronic illnesses such as heart disease or high blood pressure, overweight people and outdoor/manual workers are more susceptible to heat stroke. These groups should pay special attention to the following:

Infants and young children: Avoid going outside when the temperature is high. If they must go outside, adults should ensure they stay in places with moderate temperatures and good ventilation or air-conditioning. Infants and young children should never be left unattended in a confined space such as a vehicle;

The elderly, pregnant women, individuals with chronic illnesses and overweight people: Pay close attention to health conditions and seek help as soon as possible if experiencing any abnormalities in health indicators such as blood pressure, heart rate, etc or if there are fluctuations in health conditions. Avoid going out when the temperature is high. Make sure there is good ventilation, or turn on a fan or air-conditioner to keep an appropriate temperature indoors. High temperatures can also worsen the condition of people with chronic illnesses (such as cardiovascular and respiratory diseases). Therefore, they should have an ample supply of their usual medication and keep in contact with family members, neighbours and the community. People should seek immediate help if they feel unwell.

Outdoor/manual workers: Reschedule work to cooler hours as far as feasible. If working in a hot environment is unavoidable, provide shade where practicable and use ventilation and heat dissipation equipment. Once work has begun, gradually adjust the pace of work and take breaks in the shade to regain strength.

The DH reminded the public that heat stroke is one of the most common health risks in hot weather. Over the past five years, there have been over 200 hospital admissions due to heat stroke each year in Hong Kong, with two to five fatal cases occurring mainly during the summer months from May to September. Vulnerable groups are more susceptible to heat stroke. Symptoms include dizziness, headache, nausea, shortness of breath or confusion. In severe cases, patients may suffer from convulsions or become unconscious, which can be life-threatening if they are not cooled down and resuscitated in a timely manner.

Members of the public are also advised to pay attention to the latest weather, as well as the real-time and forecasted ultraviolet (UV) index released by the Hong Kong Observatory (HKO). When the UV index is high (6 or above), the public should note the following:

Avoid direct sunlight exposure to the skin and the eyes;

Apply broad-spectrum, water-resistant sunscreen liberally, with a sun protection factor (SPF) of at least 30 or higher, when participating in outdoor activities. Reapply every two hours if staying outdoors for long periods, or after swimming, sweating or towelling off;

While using DEET-containing insect repellents for personal protection against mosquito-borne diseases, apply sunscreen before insect repellent;

Seek shade;

Wear UV-blocking sunglasses;

Wear loose-fitting clothing with long-sleeves; and

Wear a wide-brimmed hat or use an umbrella.

If symptoms develop, such as dizziness, headache, nausea, shortness of breath or confusion, rest and seek help immediately, and seek medical advice as soon as possible.

For more health information, the public may visit theCHP's heat strokepage andUV radiation page; the HKO's Dial-a-Weather (1878 200),latestweather report and forecast,UV Indexand weather information forhiking and mountaineering; andpress releasesof the Labour Departmenton precautions against heat stroke for outdoor workers and their employers when the Heat Stress at Work Warning is in force.

Source: AI-found images