Hong Kong Introduces New Urban Renewal Measures to Encourage Redevelopment and Incentivize Private Sector Participation

Land and Development Advisory Committee holds meeting

The Development Bureau briefed the Land and the Development Advisory Committee (LDAC) at its meeting today (July 27) on the two new measures to incentivise urban renewal. The major arrangements of the measures are as follows:

(1) The Bonus Plot Ratio Pilot Scheme: If a developer commits to pull down a building with residential elements in the seven designated areas (Note), whose building age reached 50 years or above with the site area not less than 700 square metres, and redevelop it into residential use, an additional 20 per cent premium-free gross floor area (GFA) will be provided as bonus. The developer can choose to submit planning application to the Town Planning Board (TPB) to directly utilise the bonus plot ratio in kind for in-situ redevelopment. The developer can also choose to translate the bonus plot ratio into land premium value for offsetting the land premium payable for in-situ redevelopment or any other land transactions in the Northern Metropolisand other parts of the territory. To simplify the execution procedures, the Government will use standard rates to calculate the premium value of the bonus plot ratio. All in-situ redevelopment projects joining the Pilot Scheme are required to be effected by means of lease modification to ensure timely completion of the redevelopment project. The bonus plot ratio will not affect other existing GFA concession measures. Subject to market response, the Development Bureau will evaluate the effectiveness of the Pilot Scheme, as well as introduce adjustments where necessary and consider whether the period of the Pilot Scheme will have to be extended; and

(2) The cross-district transfer of plot ratio (TPR) arrangement: It is to relax the current arrangements of TPR within the same district, allowing cross-district transfer of plot ratio from the sending sites to other areas across the territory, including the New Development Areas, so as to reduce the development density in the urban area. It is also to extend the geographic coverage of sending sites from Mong Kok and Yau Ma Tei to the remaining five designated areas (Note), as well as removing the limit of two receiving sites and reducing the site area requirement of receiving sites from 1000sqm to 700sqm. To provide additional incentives, if the sending site is used for designated uses benefiting the local community, subject to the TPB's approval, certain premium-free GFA could be provided within the sending sites as bonus GFA, in addition to the full transfer of the plot ratio and GFA from sending sites in order to support the on-going management and maintenance of the sending site. Furthermore, the premium assessment arrangement will be relaxed to allow the land premium assessment for the sending sites and receiving sites to be combined. All cross-district TPR proposals will require submission of planning applications to the TPB, which will perform a gatekeeping role in ensuring the transfer will not cause adverse impact to the surrounding environment.

The Secretary for Development, Ms Bernadette Linn, said "At present, the pace of building ageing in Hong Kong far exceeds that of redevelopment by the Urban Renewal Authority (URA) and the private market. In the past decade, the number of buildings aged 50 years or above increased by about 510 per year, while on average only 160 buildings were demolished by the URA and the private sector. And not many redevelopment projects in old districts are financially viable these days. In this regard, the Government has to adopt a new mindset and bold policy thinking to give a stronger policy push to encourage the private sector to participate in urban renewal, with a view to expediting redevelopment and rescuing urban decay."

Members were very supportive of the two new measures proposed by the Government. They agreed that the Bonus Plot Ratio Pilot Scheme would provide incentives and enhance the financial viability of redevelopment projects in old districts, and that the cross-district TPR arrangement could further incentivise the market to use the planning tool to expedite urban renewal.

Members considered that it was time to give bolder and stronger push to promote urban redevelopment by the URA and the market. If the response of these measures is positive, members expected that the Government could extend the Pilot scheme and consider relaxing the implementation arrangements where appropriate. Given the measures would involve a lot of technical implementation details, Members would like the Government to set out such details in the application guidelines of the relevant measures, so as to facilitate implementation.

The above are two of the measures announced in the Chief Executive's 2025 Policy Address to expedite urban renewal. Having consulted relevant stakeholders and taken into account their comments, the Government has formulated the implementation arrangements. The LDAC today mainly discussed the implementation details of the relevant proposals.

The Government will issue a joint practice notes for launching the Bonus Plot Ratio Pilot Scheme and revise the TPB Guidelines on TPR after obtaining the TPB's endorsement, with a view to launching the two schemes in the third quarter of 2026.

Note: The seven designated areas refer to Cheung Sha Wan (the same Outline Zoning Plan (OZP) covering also Sham Shui Po), Ma Tau Kok (covering Kowloon City and To Kwa Wan), Mong Kok, Sai Ying Pun and Sheung Wan (covered by the same OZP), Tsuen Wan, Wan Chai and Yau Ma Tei.

Source: AI-found images

Labour Department highly concerned about fatal work accident that happened in Chek Lap Kok today

The Labour Department (LD) is highly concerned about a fatal work accident that happened at an aircraft hangar in Chek Lap Kok this morning (July 27), where a male worker fell from the working platform of a fuselage dock while repairing an aircraft hull in the hangar. He was certified dead later in hospital. The LD is saddened by death of the worker and expresses its deepest sympathy to his family.

The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and issued a suspension notice to the employer concerned, suspending the use of the fuselage dock concerned for aircraft maintenance work at the hangar. The employer cannot resume the work process until the LD is satisfied that suitable measures to abate the relevant risks have been taken."

The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of the duty holders and recommend improvement measures. We will take actions pursuant to the law if there is any violation of the work safety legislation."

To prevent workers from falling from height, the LD reminds employers to take adequate precautionary measures, including providing workers with suitable working platforms, which should be securely fenced by guardrails at a height of not less than 900 mm or otherwise suitably protected, so as to protect workers' safety while working at height.

The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.

In regard to today's accident, the LD will issue a Work Safety Alert through its mobile application "OSH 2.0", website and email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.

The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.

For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should also co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.