Urban renewal is essential, not optional, for a small and densely populated city like Hong Kong. While new buildings continue to mushroom across the districts each year, it is outpaced by the relentless ageing of blocks, many of which have become dilapidated and pose a danger to public safety. In this context, the government’s new five-year
bonus plot ratio pilot scheme to expedite redevelopment is not merely a technical tweak to planning rules. It is a much-needed and pragmatic attempt to realign developers’ incentives with the city’s redevelopment needs. This will hopefully enhance building safety, housing supply and the quality of living in Hong Kong.
Starting from September, developers can get an extra 20 per cent of gross floor area as a reward for taking on private redevelopment projects in seven designated old districts. Only residential plots of at least 700 square metres (7,535 sq ft) with buildings aged 50 years and above will be eligible. Relevant lease conditions and penalties will be set out to ensure the projects are completed on time.
Alternatively, the bonus gross floor area can also be converted into land premium value to offset the land premium payable for the redevelopment project or any land transactions by the developer, including land bidding, lease modification or land exchange projects, in the Northern Metropolis project and other areas in the city within a decade.
First
announced in the chief executive’s policy address last year, this initiative follows the legislative amendment two years ago to
lower the compulsory sale threshold for redevelopment. The measures underline the government’s awareness of the difficulties involved and its determination to accelerate the slow pace of urban renewal.
Data compiled by the Legislative Council research office
showed that the number of buildings at least 50 years old doubled to 10,200 between 2014 and 2023, and is projected to surge by 138 per cent to 24,300 by 2043. As of 2025, 68 per cent of private buildings were 30 years old or above, with a further 14 per cent due to cross this threshold within a decade. As the design lifespan of concrete is typically 50 years, the city’s ageing building stock poses mounting safety risks.
This situation is not helped by the slow pace of redevelopment by the Urban Renewal Authority and private developers. Of the 1,650 private buildings demolished from 2013 to 2022, only about 240 were handled by the statutory body, according to the Development Bureau.
