Residents walk in front of residential blocks of the Wah Fu Estate, an old public housing in Hong Kong’s Southern District, on Dec 11, 2023. (SHAMIM ASHRAF / CHINA DAILY)

HONG KONG – The government introduced an amendment bill before the Legislative Council on Tuesday for updating and streamlining the compulsory sale regime by proposing to reduce the compulsory sale application thresholds for private buildings aged 50 or above.

The proposed amendment aims to expedite the consolidation of property interests to facilitate the redevelopment of old and dilapidated buildings and improve people's livelihood, said the Development Bureau.

“The government's policy on the renewal of buildings emphasizes both redevelopment and rehabilitation,” said a spokesperson for the bureau.

Redevelopment however is a relatively practical option to tackle the safety risks of some aged and dilapidated buildings, the spokesman said, adding that at end-2022, the number of private buildings aged 50 or above was about 9,600.

READ MORE: Aging buildings problem needs to be addressed aggressively

Based on areas covered by Outline Zoning Plans, the first batch of designated areas are: Cheung Sha Wan, Sham Shui Po, Ma Tau Kok, Kowloon City, To Kwa Wan, Mong Kok, Sai Ying Pun, Sheung Wan, Tsuen Wan, Wan Chai and Yau Ma Tei.

The bill proposes to allow minority owners who are owner-occupiers to stay in their properties for up to six months after the compulsory sale, to help them with relocation

For private buildings in designated areas, if their age falls within the range of 50 to 59, the thresholds will be reduced from 80 percent to 70 percent. If their age is 60 or above, the thresholds will be reduced to 65 percent.

For private buildings in non-designated areas, if their age falls within the range of 60 to 69, the thresholds will be reduced from 80 percent to 70 percent.

For buildings aged 70 or above, regardless of their location, the thresholds will be 65 percent.

Even with no common staircases connecting the buildings thereon, the bill proposes to allow an applicant to amalgamate two or more adjoining lots and take the average of the ownership in those lots for the purpose of facilitating joint redevelopment of adjoining lots.

The bill also proposes streamlining the legal process of the compulsory sale regime. 

If the building erected on a lot is aged 50 or above and all minority owners do not object to redevelopment, an applicant will be dispensed with the requirement to submit expert reports to the Lands Tribunal to justify the need for redevelopment, thus shortening the processing time of the application.

ALSO READ: Can developer land banks be unlocked?

To enhance support for affected minority owners, the bill proposes to allow minority owners who are owner-occupiers to stay in their former properties for a period of not more than six months after the compulsory sale, to help them with relocation.

“Having duly considered the views of the pubic and relevant stakeholders, the legislative proposals strive to strike an appropriate balance between expediting the redevelopment of old buildings and protecting the rights of minority owners,” said the spokesman.

The bill will be gazetted on Friday and introduced into the LegCo for first reading on Jan 10, 2024.