The Government today announced that the Chief Executive-in-Council approved granting a site at Bailey Street, Hung Hom, and a site in Tseung Kwan O Area 137 to the Urban Renewal Authority (URA) by private treaty at a nominal premium of $1,000.
The grants aims to provide additional financial support to the URA to enhance its cashflow, so that it can continue to take forward its commenced redevelopment projects in an orderly manner.
The two sites to be rezoned for residential use will be granted for 50 years from the date of execution through statutory town planning procedures in due course.
Secretary for Development Bernadette Linn said 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, ie acquiring properties at the market peak but tendering at low price or even a failed tender, thus affecting its cashflow.
Ms Linn noted that 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 fulfil its urban renewal mission.
Ms Linn added that 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 Tseung Kwan O Site, the original housing development of which has been deferred due to reprioritisation of the Housing Authority’s projects, granting the site would optimise the use of the land resources in a timely manner.
The Bailey Street Site, with a net site area of 7,610 sq m, 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 could result in optimised land use and enhanced planning gains for the area by accommodating G/IC facilities to meet the district shortfall. The proposed total gross floor area will be about 68,490 sq m.
The Tseung Kwan O Site has a net site area of about 9.15 hectares. The proposed total gross floor area is about 713,700 sq m. While the residential site concerned was reserved for public housing development, having considered the reprioritisation of the Housing Authority’s projects and with sufficient land supply for public housing over the next 10 years. Furthermore, there are still about 42 ha of land reserved for housing development in Tseung Kwan O Area 137.
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