An evaluation on the Land (Compulsory Sale for Redevelopment) Ordinance in expediting urban renewal progress

Abstract

To tackle urban decay in Hong Kong, the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545) and the Land (Compulsory Sale for Redevelopment) (Specification of Lower Percentage) Notice have set out to promote private-led redevelopment. Yet, it seems that the pace of urban renewal could not catch up with the speed of urban decay. The primary reasons for the sluggish pace of urban renewal are the weaknesses in the Ordinance, which include insufficient staff in the Lands Tribunal, a lack of incentives for developers, inflexibility for large-scale redevelopment, and other issues. Additionally, infringement on the property rights of minority owners is a pressing concern that must be addressed. To streamline the compulsory sale regime, the Legislative Council has proposed several amendments to the Ordinance. The proposal is separated into two parts, namely lowering of application threshold and relaxation of regulations. This includes enhancing flexibility for multiple adjoining lots compulsory sale application. Large-scale redevelopment is always prioritized over single lot development. To better utilize the land resource and achieve a more effective urban planning, it is recommended that the government reviews the system and implements relevant policies to promote private participation in urban renewal. The main goal of the Ordinance is to enable private developers to assist the process of urban renewal. However, while redevelopment is a viable long-term solution for combating urban decay, it is not the sole answer. The acquisition process for land can be challenging and time-consuming. Thus, other options such as revitalization and rehabilitation should be explored to reduce the rate of urban decay. In conclusion, additional support for urban renewal is crucial, and lowering the application threshold can hasten progress. Lessons learned from other Asian cities, including Japan and Singapore, could inform efforts to enhance the compulsory sale regime.