Hong Kong approves land grants to beleaguered Urban Renewal Authority in rare move
Statutory body handed Hung Hom and Tseung Kwan O sites to support redevelopment projects, with a condition to review its financing model
Hong Kong authorities have granted two land parcels to the cash-strapped Urban Renewal Authority (URA) in a rare move offering extra financial help for its projects, with a review of the body’s operating and funding model part of the conditions of the deal.
The key decision-making Executive Council gave the green light on Friday, with the URA to enjoy a nominal land premium of HK$1,000 (US$127) for 50 years at the sites in Hung Hom and Tseung Kwan O.
The sites would have to be rezoned for residential use for the self-financing statutory authority to “continue to take forward its commenced redevelopment projects in an orderly manner”, the government said.
Secretary for Development Bernadette Linn Hon-ho said large-scale redevelopment projects, such as those carried out by the authority, involved “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, thus affecting its cash flow,” she said.
“Granting land at a nominal land premium has long been one of the major government support measures for the URA … Granting the two sites to the URA is along the same direction that helps the URA to fulfil its urban renewal mission.”