The Hong Kong General Chamber of Commerce Town Hall Forum Series: Meet the Ministers Strategies for Increasing Land Supply CHAN Mo Po, Paul Secretary for Development Development Bureau 3 July 2014 1 Land Utilisation of Hong Kong 24.0% (265 km2) Built-up Land 66.6% (738 km2) Woodland/Shrubland/Grassland /Wetland 0.7% (7 km2) Barren Land 2.7% (30 km2) Water Bodies 6.1% (68 km2) Agricultural Land 2 Land Demand - Housing Population: from about 7.07 M people in 2011 to about 8.47 M people in 2041 Domestic Households No.: from about 2.37 M in 2011 to 3.05 M in 2041 Average Household Size: from 2.9 in 2011 to 2.7 in 2041 3 New Housing Supply Target • The new housing supply target is to provide 470 000 housing units in the coming 10 years. • The Government must continue to adopt a multi-pronged approach to increase land supply in view of the large number of people waiting for the Public Rental Housing, and those who wish to improve their living environment. 4 Land Demand - Commercial and Other Land Uses • Demand for Commercial and Office Space • Demand for GIC facilities, open space, hospitals, schools, welfare and recreational facilities, etc. • Infrastructures and utilities (such as roads, railways) also require land 5 5 Land Supply Policy • Vision: Increasing land supply to facilitate social and economic developments, and improve the living space of Hong Kong people • Objective: Developing new land extensively and building up an abundant “land reserve” • Strategy: Adopting a multi-pronged strategy to increase land supply in the short, medium and long terms, through optimal use of developed land and developing new land 6 Land Development Takes Time Short-to-Medium Term New Development Areas; New Town Extension; Land Use Reviews; Increasing Developing Quarries, etc. Development Intensity (including brownfield sites) Long Term Reclamations outside Victoria Harbour; Cavern Development, etc. Developing New Territories North and Lantau 7 Land Use Reviews - Ongoing Initiatives to Increase Supply of Housing Land in Short to Medium Term • Convert suitable GIC/government sites for residential use • Convert Green Belt sites • Convert industrial sites for residential use and conduct another round of review 8 Land Use Reviews – Latest Round • In its latest round of land use reviews, the Planning Department has identified about 80 sites in various districts which have potential for housing development and could be made available in the coming five years (i.e. from 2014/15 to 2018/19) for the production of some 89 000 flats. • Including sites identified earlier on, there are about 150 sites (including about 70 Green Belt sites with vegetation), the statutory plans of which have to be amended, available over the next 5 years to provide over 210 000 public and private housing units. 9 Increasing Development Intensity as Appropriate • Duly increase the current maximum domestic plot ratios allowed in different Development Density Zones as permissible in planning terms, with a view to increasing the domestic floor space that can be provided on individual sites. New Towns Main Urban Areas Development Density Zone Increase in the Maximum Domestic Plot Ratio (PR) Zone 1 Zones 2 and 3 Zone 1 Zones 2 and 3 Zone 4 - 20% 20% 20% 100%  Individual sites could be up-zoned based on planning merits 10 Pilot Scheme for Arbitration on Land Premium • To introduce a Pilot Scheme for Arbitration on Land Premium to facilitate early agreement on land premium 11 Relaxing the Pok Fu Lam Moratorium Near Chi Fu Road Wah Lok Path Wah Fu North and Wah King Street Wah Fu Estate Kai Lung Wan 6 Sites in Pok Fu Lam South: 11,900 Additional PRH/HOS Units 12 Other Initiatives to Increase Supply of Housing Land in Short to Medium Term • To make available for housing development or other uses in higher demand sites for which the originally earmarked purposes will no longer be pursued Tai Po Area 9 Tin Shui Wai Area 112 Tin Shui Wai Area 115 Other examples: • Queen’s Hill • Pak Shek Kok 13 Other Initiatives to Increase Supply of Housing Land in Short to Medium Term Development of the Former Diamond Hill Squatter Area and Quarry Sites Estimated Number of flats Diamond Hill “CDA” site About 920 PRH and 3 130 HOS units Former Cha Kwo Ling Kaolin Mine About 2 200 housing units Anderson Road Quarry About 9 410 public and private housing units Ex-Lamma Quarry About 1 900 public and private housing units Other Initiatives to Increase Supply of Housing Land in Short to Medium Term • Last year, the Government invited the Urban Renewal Authority (URA) to forge ahead with the “Demand-led Redevelopment Project Pilot Scheme”. The Scheme has been well received. Since the launch of the Scheme in July 2011, URA has commenced nine projects, one of which was terminated after having failed to meet the 80% owners’ acceptance threshold. A review of the Scheme is being undertaken. • URA awarded tenders for two residential project sites in March and April 2014 respectively. Based on URA’s current programme, another 17 residential project sites are scheduled to be tendered out in the next four years (2014/15 to 2017/18), excluding the one project site to be self-developed by URA. 15 Increasing the Supply of Commercial Land and Facilities – Energising Kowloon East (e.g. Kai Tak) – Conversion of Suitable GIC Sites into Commercial Use – New Central Harbourfront – Revitalisation of industrial buildings – North Commercial District on the Airport Island – New Development Areas – Developing the New Territories North – Lantau Development – Reclamation, Cavern and Underground Space Developments 16 New Office Supply in Kowloon East Actual / Forecast Completion of New Office (All Grades) 400.0 370.3 350.0 GFA ('000 sq.m.) 300.0 Actual / Forecast Completion of New Office in Kwun Tong / Kowloon Bay ('000 sq.m. GFA) 250.0 207.6 200.0 197.7 181.5 41.3% 166.0 164.1 153.0 Actual / Forecast Overall Completion of New Office in Hong Kong ('000 sq.m. GFA) 150.0 44.4% 100.0 32.5% 92.2 52.1% 31.3% 85.5 37.9% 74.9 56.8 53.9 50.0 0.0 2010 2011 2012 2013 2014* 2015* Year Remarks: * Provisional figures Figures based on Property Review with conversion factor (0.7476) (Source: Property Reviews of RVD) 17 Medium to Long Term Land Supply 1 Kwu Tung North and Fanling North New Development Areas 2 Hung Shui Kiu New Development Area 3 Kam Tin South Development 4 Review of Deserted Agricultural Land in North District and Yuen Long 5 Developing the New Territories North 6 Lantau Development (including Tung Chung New Town Extension) 7 Reclamation outside Victoria Harbour 8 Cavern and Underground Space Developments 18 Medium to Long Term Land Supply • Kwu Tung North and Fanling North New Development Areas (NDAs): To implement Kwu Tung North and Fanling North NDAs as extension to Fanling/Sheung Shui New Town • Hung Shui Kiu New Development Area: Recommended Outline Development Plan under preparation 19 Medium to Long Term Land Supply • Continue to take forward the planning for residential development at Kam Tin South West Rail Kam Sheung Road Station and Pat Heung Maintenance Depot, conduct a study on the 110-ha adjoining areas for public and private housing development, and explore vigorously the residential development potential of land along existing and planned railways 20 Medium to Long Term Land Supply Tung Chung New Town Extension – identify the development potential and opportunities to extend Tung Chung into a distinct community Review of Deserted Agricultural Land in North District and Yuen Long – expedite the review of agricultural land currently used for industrial purposes or temporary storage, or which is deserted for release for residential use Developing New Territories North – explore the feasibility of developing a modern new town of a similar scale of the Fanling/Sheung Shui New Town 21 Medium to Long Term Land Supply Reclamation outside Victoria Harbour and Cavern Development 5 1 2 3 3 4 1 2 Pilot Schemes Near Shore Reclamation Sites 1 Lung Kwu Tan 2 Siu Ho Wan 3 Sunny Bay 4 Tsing Yi Southwest 5 Ma Liu Shui Strategic Study of Artificial Islands in Central Waters 1 Diamond Hill Fresh Water Service and Salt Water Service Reservoirs 2 Sai Kung Sewage Treatment Works 3 Sham Tseng Sewage Treatment Works 22 Medium to Long Term Land Supply – Lantau Development Hong Kong Boundary Crossing Facilities island of Hong Kong–Zhuhai–Macao Bridge Tuen Mun-Chek Lap Kok Link North Commercial District HKBCF of HZMB Hong Kong International Airport • About 130 ha • Development of "bridgehead economy" • Explore the feasibility of developing commercial and economic development Tung Chung To HZMB 23 Lantau Development Advisory Committee Major Infrastructure and Development Projects under Construction/ Planning in Lantau Transport Infrastructure A Hong Kong-Zhuhai-Macao Bridge and Hong Kong Link Road under construction B Tuen Mun-Check Lap Kok Link under Construction C Proposed Airport Third Runway Commercial Development and Bridgehead Economy D Proposed Topside Development at Hong Kong Boundary Crossing Facilities Island of Hong Kong-Zhuhai-Macao Bridge E Proposed Airport North Commercial District New Town and Reclamation F Proposed Tung Chung New Town Extension G Proposed Siu Ho Wan Reclamation H Proposed Sunny Bay Reclamation I East Lantau Metropolis and Related Transport Links – Preliminary Concept 24 Medium to Long Term Land Supply Relocating Sha Tin Sewage Treatment Works (STSTW) to caverns would release about 28 ha of land for housing and other uses Warehouse Existing STSTW Data Centre Relocated STSTW in Caverns Storage Study on Long-term Strategy for Cavern Development Existing Effluent Export Tunnel Medium to Long Term Land Supply Territory-wide study on underground space development Pilot study on underground space development in selected strategic urban 26 areas Conclusion • Increase land supply in the short, medium and long term through optimal use of existing land and developing new land to facilitate social and economic developments • Develop new land extensively and build up an abundant “land reserve” to respond more flexibly to society’s needs for land • Work in a pragmatic and proactive manner to deal with problems, engage the public and rise up to challenges, with a view to improving the living space of Hong Kong people 27 End 28