Government Launches Additional Plot Ratio Pilot Scheme for Old District Redevelopment
Crhk · 3 SOURCESabout 3 hours ago2 MIN
Summary
The Development Bureau announced on Monday that the Additional Plot Ratio Pilot Scheme will take effect on September 1, providing developers with a 20% bonus in gross floor area without land premium payments for qualifying redevelopment projects in seven designated old districts across Hong Kong . The scheme, jointly outlined by the Planning Department, Lands Department, and Buildings Department, targets residential buildings that are at least 50 years old with sites measuring no less than 700 square metres . Development Bureau Director, Anna Ning Hun-ho, stated that the initiative represents a bold policy move to address the alarming rate of building aging, which she said significantly exceeds the combined reconstruction capacity of both the Urban Renewal Authority and private market .
Key Points
- Scheme covers seven districts: Cheung Sha Wan, Ma Tau Kok, Wan Chai, Mong Kok, Yau Ma Tei, Tsuen Wan, and Sai Ying Pun/Sheung Wan
- Developers must commit to demolishing buildings aged 50+ years with site area of at least 700 sqm for residential redevelopment
- Qualifying projects receive 20% additional gross floor area without land premium under the pilot programme lasting until August 31, 2031
- Developers may apply to Planning Board for 20% increase in total floor area or convert additional plot ratio into land value credit
- Lands Department will impose lease conditions including redevelopment deadlines and penalties to ensure timely completion
- Bureau will evaluate scheme effectiveness and consider adjustments or extensions based on market response
Why It Matters
The scheme arrives as Hong Kong faces a mounting crisis of aging buildings, with over 500 structures reaching 50 years of age annually and projections exceeding 700 per year within 15 years . By removing financial barriers that have previously deterred private sector participation, the government aims to unlock redevelopment potential in neglected urban areas where the combined efforts of the Urban Renewal Authority and private developers have fallen short of addressing the pace of building deterioration .
The scheme arrives as Hong Kong faces a mounting crisis of aging buildings, with over 500 structures reaching 50 years of age annually and projections exceeding 700 per year within 15 years . By removing financial barriers that have previously deterred private sector participation, the government aims to unlock redevelopment potential in neglected urban areas where the combined efforts of the Urban Renewal Authority and private developers have fallen short of addressing the pace of building deterioration .