The Government today issued a Joint Practice Note (JPN) setting out the detailed requirements and arrangements of the Bonus Plot Ratio Pilot Scheme which will be launched in September.
The JPN was issued by the Planning Department, the Lands Department and the Buildings Department, under the Development Bureau (DEVB).
Secretary for Development Bernadette Linn pointed out that, to focus market resources on promoting redevelopment in old districts, the pilot scheme will be implemented in seven old districts, comprising Cheung Sha Wan, Ma Tau Kok, Mong Kok, Sai Ying Pun and Sheung Wan, Tsuen Wan, Wan Chai, and Yau Ma Tei.
Private redevelopment sites located within these seven old districts, which meet other requirements of the pilot scheme, can obtain an additional 20% plot ratio (PR) to enhance the financial viability of redevelopment projects..
Miss Linn explained that, given that buildings aged 50 years or above are increasing by more than 500 per year, and will even grow by an annual average of over 700 blocks in the coming 15 years, it is necessary for the Government to adopt an innovative and bolder policy to push the market to undertake redevelopment.
The ultimate aim is to tackle the issue of building ageing at a much faster pace than redevelopment by both the Urban Redevelopment Authority and the private market, thereby achieving the Government’s policy objective of addressing hidden hazards of old buildings and improving living environments, Ms Linn added.
Under the pilot scheme, if a developer commits to pull down a residential building in the seven old districts with the building age reaching 50 years or above, with the site area not less than 700 sq m, and redevelop it into residential use, an additional 20% premium-free gross floor area (GFA) will be provided as bonus.
If it is decided not to increase the GFA by a maximum of 20% at the in-situ redevelopment site, the bonus PR can be translated into land premium value to offset the land premium payable for that in-situ redevelopment project of the developer, or any land transactions carried out in the Northern Metropolis and other areas across Hong Kong.
The pilot scheme will cover a period of five years, starting September 1 this year until August 31, 2031.
The DEVB will evaluate its effectiveness in a timely manner, and introduce adjustments where necessary, including considering whether the period of the pilot scheme will be extended, having regard to the market response.