their implications for Hong Kong; the potential and opportunities of eco-
nomic cooperation with Shenzhen and the strategic planning implications
for Hong Kong; the potential and opportunities to strengthen the exist-
ing environmental cooperation with Shenzhen and its strategic planning
implications; the interface between urban development on both sides of
the boundary with Shenzhen; the feasibility of ‘boundary towns’, including
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332 · MAKING HONG KONG
constraints, possible locations, expected functions and the required devel-
opment scale.
7. Giving consideration to environmental factors and nature conservation: To
build a better environment, some ‘restricted areas’ will be identified to safe-
guard natural heritage and marvellous landscapes. Regional environmental
issues covering the PRD will be taken into account when formulating devel-
opment strategies and response plans.
These seven objectives show that, for future planning, Hong Kong not
only focuses on local economic development, but also gives priority to cul-
tural conservation and environmental protection, with the socio-economic
integration with the Mainland being a top priority. Since the Metro Area is
a development focus for the government, land supply in the urban area can
be increased by means of changes in land uses during the process of urban
renewal according to the objectives stipulated in Hong Kong 2030. (See
Figures 6.5 and 6.6.)
Urban renewal
According to the government’s Planning for Growth published in 1985, the
Metro Area would be the engine for the city’s overall development. In 1987,
the then Governor, David Wilson, pointed out that earlier-developed parts of
the urban area were very crowded, with poor living conditions and a lack of basic
amenities. In view of the dire need for improvements, he vigorously promoted
the Metroplan. On 15 January 1988, the Land Development Corporation
(LDC) was established to be in charge of urban development, which showed
the government’s determination in that regard. In the early days of the LDC, the
convention of conserving historical buildings had yet to be formed, and striving
for economic efficiency was the ideal for urban renewal in the 1980s.
Prior to 1987, urban renewal was mainly driven by private developers, who
valued profits over urgency. Owing to the extensive areas and fragmented own-
ership involved, it was difficult for private developers to easily assemble all the
land in need of redevelopment. Under section 10 of the Land Development
Corporation Ordinance (Cap. 15), the LDC should conduct its business accord-
ing to prudent commercial principles.68 It could also apply to the Government
for recovery of the remaining interests within a specified scope of redevel-
opment, so as to improve the efficiency of renewal. The LDC officially com-
menced operation on 15 January 1988.69 On 12 November of the same year,
the LDC signed letters of intent with four developers, namely Cheung Kong
(Holdings) Limited, New World Development Company Limited, Sun Hung
68
Hong Kong Legislative Council, ‘Background Brief on the Urban Renewal Authority’, LC Paper No.
CB(1)1947/08-09(04), 16 June 2009, p.1, http://www.legco.gov.hk/yr08-09/english/panels/dev/papers/
dev0623cb1-1947-4-e.pdf.
69
Land Development Corporation, Land Development Corporation Annual Report 2000–2001, Hong
Kong, Land Development Corporation, 2001, p.48.
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Source: Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong Kong, Planning Department, 2007, p.123.
Figure 6.5 Preferred development option for Hong Kong 2030 (long-term – by 2030)
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Source: Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong Kong, Planning Department, 2007, pp.162–163.
Figure 6.6 ‘Recommended development pattern’ in Hong Kong 2030
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Transformation after the return to China (1997–2015) · 335
Kai Properties Limited and Great Eagle Limited, to launch eight redevelopment
projects in Central, Sheung Wan, Wan Chai, Yau Ma Tei and Mong Kok under
a public–private partnership (PPP) mode.70
Under the PPP mode and without the use of public money, the LDC com-
pleted and sold 16 redevelopment projects between 1988 and 2001, with a total
cost of 66 billion dollars. Those projects altogether provided 8,200 residential
units and 540,000 square metres of commercial and office space. Moreover,
they made available 39,000 square metres of government, institution and com-
munity facilities as well as 40,000 square metres of open space.71 Major projects
included conservation of Sheung Wan Market (currently known as Western
Market) in 1991, redevelopment of Li Chit Garden in 1994, and redevelopment
of Yuen Po Street Bird Garden and the Grand Millennium Plaza in Sheung Wan
in 1997.72
Since the LDC should conduct its business according to the principle of
financial prudence in accordance with the Land Development Corporation
Ordinance, it could only select financially viable projects for redevelopment.
When the property market was buoyant, the LDC was still able to attract
partners for redevelopment. After the 1997 Asian financial crisis, however,
Hong Kong’s economy fell into recession and the property market slumped,
leading to fewer lucrative redevelopment projects. Moreover, the LDC was
required by law to take all reasonable steps to offer ‘fair and reasonable’ terms
to property owners in the assembly process, which meant that the LDC had
to conduct protracted negotiations with property owners and to make several
rounds of offers before it could request the government to resume the remain-
ing interests for redevelopment.73 The government only provided a non-
revolving interest-bearing loan facility of 100 million dollars, without injecting
any funds to assist acquisitions. Even for lucrative redevelopment projects,
the returns could not be reaped until the projects were complete. The LDC
also did not have sufficient resources to rehouse housing tenants affected by
redevelopment.
In 1999 the government conducted a study on urban renewal strategy, and
made new recommendations in that regard. In the Policy Address, the Chief
Executive announced the establishment of the URA in place of the LDC. In
July 2000, the government drafted the Urban Renewal Authority Bill. On 1 May
2001, the URA was established under section 3 of the Urban Renewal Authority
70
Land Development Corporation, The LDC Experience: 12 Years’ Efforts of Urban Renewal, 1988–2000,
Hong Kong, Land Development Corporation, 2000, p.14.
71
Land Development Corporation, Land Development Corporation Annual Report 2000–2001, Hong
Kong, Land Development Corporation, 2001, p.18. The Land Development Corporation Annual Report 1999–
2000 mentioned that the LDC had ‘either completed or set in motion 30 projects’; see Land Development
Corporation, Land Development Corporation Annual Report 1999–2000, Hong Kong, Land Development
Corporation, 2000, p.9.
72
Urban Renewal Authority, Towards Urban Renewal v3.0, Hong Kong, Urban Renewal Authority, 2008,
pp.25–29.
73
‘People First Approach to Urban Renewal’, Press Releases, 27 November 2011, http://www.info.gov.hk/
gia/general/200111/27/1127225.htm.
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336 · MAKING HONG KONG
Ordinance (Cap. 563).74 There were three major differences between the URA
and the LDC in terms of the urban renewal model:75
1. The land assembly procedure under the URA model was streamlined. The
URA could request the government to resume land without going through
a protracted acquisition process.
2. There would be more rehousing resources to accommodate affected
tenants. The Hong Kong Housing Authority and the Hong Kong Housing
Society both agreed to become rehousing agents for the URA. Each agency
would provide 1,000 public rental units in each of the first five years of the
URA’s operation for rehousing tenants affected by redevelopment projects.
3. Financial and non-financial arrangements would be put in place by the gov-
ernment to enhance the viability of URA projects. Private sector participa-
tion would be encouraged, in order to provide for a self-financing urban
renewal programme in the longer term.
In November 2001, the government published the Urban Renewal Strategy
to review the conditions of old buildings in urban areas, pointing out that there
were approximately 9,300 privately owned buildings aged 30 years or above in
the Metro Area (Hong Kong Island, Kowloon, Tsuen Wan and Kwai Tsing).
The URA then developed guiding principles76 and a 20-year urban renewal pro-
gramme for the redevelopment of some 2,000 ageing or dilapidated buildings,
the improvement of the environmental quality of over 67 hectares of old and
run-down urban areas, the rehousing of some 27,000 tenant households, the
provision of around 60,000 square metres of open space, the provision of about
90,000 square metres of floor space for use as community and welfare facilities,
and the provision of seven new school campuses.77
The government designated nine target areas for redevelopment: Kwun
Tong, Ma Tau Kok, Sai Ying Pun, Sham Shui Po, Tai Kok Tsui, Tsuen Wan,
Wan Chai, Yau Ma Tei and Yau Tong. It included 200 new projects and 25
uncompleted LDC projects for redevelopment. The 225 project areas covered a
total area of 67 hectares, affecting 126,000 persons living in 32,000 flats. Priority
was given by the URA to 25 projects which had been initiated but were yet to be
completed by the LDC.78 (See Table 6.7.)
From July 2008 to June 2010, the Development Bureau carried out an
74
Hong Kong Legislative Council, ‘Background Brief on the Urban Renewal Authority’, LC Paper No.
CB(1)1947/08-09(04), 16 June 2009, p.2, http://www.legco.gov.hk/yr08-09/chinese/panels/dev/papers/
dev0623cb1-1947-4-c.pdf.
75
‘People First Approach to Urban Renewal’, Press Releases, 27 November 2011, http://www.info.gov.hk/
gia/general/200111/27/1127225.htm.
76
Hong Kong Planning and Lands Bureau, Urban Renewal Strategy, Hong Kong, Planning and Lands
Bureau, 2001, p.1.
77
Hong Kong Planning and Lands Bureau, Urban Renewal Strategy, Hong Kong, Planning and Lands
Bureau, 2001, pp.2–3.
78
Hong Kong Planning and Lands Bureau, Urban Renewal Strategy, Hong Kong, Planning and Lands
Bureau, 2001, p.4.
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Transformation after the return to China (1997–2015) · 337
Table 6.7 Geographical distribution of 25 projects initiated by the LDC and prioritised by
the URA
District Location of redevelopment project Total number of
redevelopment
projects
Sham Shui Po Po On Road/Shun Ning Road 7
Castle Peak Road/Cheung Wah Street (Hong Kong
Housing Society responsible for the project)
Castle Peak Road/Un Chau Street (Hong Kong
Housing Society responsible for the project)
Un Chau Street/Fuk Wing Street (Hong Kong
Housing Society responsible for the project)
Castle Peak Road/Hing Wah Street (Hong Kong
Housing Society responsible for the project)
Po On Road/Wai Wai Road (Hong Kong Housing
Society responsible for the project)
Fuk Wing Street/Fuk Wa Street
Tai Kok Tsui Cherry Street 4
Bedford Road/Larch Street
Larch Street/Fir Street
Pine Street/Anchor Street
Mong Kok Reclamation Street 3
Sai Yee Street
MacPherson Stadium
Hung Hom Baker Court 1
Central and Peel Street/Graham Street 3
Western Wing Lee Street/Staunton Street
First Street/Second Street
Wan Chai Lee Tung Street/McGregor Street 3
Johnston Road
Queen’s Road East
Shau Kei Wan Shau Kei Wan Road (Hong Kong Housing Society 2
responsible for the project)
Sai Wan Hon Street
Wong Tai Sin Nga Tsin Wai Village 1
Kwun Tong Kwun Tong Town Centre 1
Note: In 2001, the redevelopment project at Hanoi Road in Tsim Sha Tsui, announced for implementation by
the Land Development Corporation, was undertaken by a private developer.
Sources: Hong Kong Planning and Lands Bureau, Urban Renewal Strategy, Hong Kong, Planning and Lands Bureau, 2001,
pp.1, 4; Ming Pao, 3 January 1998, p.A4; Sing Tao Daily, 3 January 1998, p.A12.
extensive three-stage public consultation to fully review the Urban Renewal
Strategy (URS). In February 2011, the Development Bureau published the
revised Urban Renewal Strategy, under which the government would fully reju-
venate older urban areas by way of redevelopment, rehabilitation, revitalisation
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338 · MAKING HONG KONG
and reservation (the 4R business strategy). It also adopted a ‘people first,
district-based and public participatory’ approach. Implementation of the URS
should be undertaken by the URA, together with all the other stakehold-
ers or participants (including related government bureaus and departments,
relevant district councils, the Housing Society, the private sector (property
owners and developers), individual owners, professionals and non-govern-
mental organisations), with ‘redevelopment’ and ‘rehabilitation’ as the URA’s
core businesses.79
In 2004, the URA announced initiatives to help carry out building rehabilita-
tion work, including the establishment of a Building Rehabilitation Materials
Incentive Scheme and provision of interest-free loans and grants. As of January
2006, about 100 buildings had been restored under the URA’s rehabilitation
scheme.80 In 2009 the government launched Operation Building Bright, provid-
ing property owners with financial and technical support in the repair and main-
tenance of old and dilapidated buildings.
The ages of buildings in urban areas grow over the years. Pursuant to
the building collapse at No. 45J Ma Tau Wai Road on 29 January 2010, the
Buildings Department once again inspected all old buildings across the terri-
tory and discovered that there were as many as 4,011 private buildings aged
50 years or above across the territory, most of which were located in Kowloon
City (1,088), followed by Yau Tsim Mong (645), Sham Shui Po (515), Central
and Western (493) and Wan Chai (490).81 Buildings aged 50 years or above
accounted for 81 per cent of the total in these five districts. The number of
buildings aged 30 years or above in 2011 had increased by 50 per cent com-
pared with 9,300 in 2001.
On 31 December 2013, the Housing Department tallied the number of
old buildings again, and discovered that, excluding New Territories exempted
houses, there were about 9,890 private buildings of three storeys or more aged
at least 40 years across the territory (Table 6.8). The Buildings Department
estimated that the number of buildings aged 40 years would increase annually
by about 600 in the following decade.82 Learning from the lesson of the building
collapse at Ma Tau Wai Road, the government spent 3.5 billion dollars to help
owners of over 3,200 buildings aged 30 years or over to carry out repair works.
The scheme was implemented by the URA and the Housing Society in collabo-
ration with the Buildings Department.83
79
Urban Renewal Authority website, http://ura.org.hk/tc/about-ura.aspx; Hong Kong Development
Bureau, Urban Renewal Strategy, Hong Kong, Development Bureau, 2011, http://www.ursreview.gov.hk/
tch/doc/New%20URS%20(Chi).pdf.
80
Urban Renewal Authority, Towards Urban Renewal v3.0, Hong Kong, Urban Renewal Authority, 2008,
pp.31, 33.
81
Buildings Department, Report on the Inspection of Buildings Aged 50 or Above, Hong Kong, Buildings
Department, April 2010, Annex 1.
82
‘LCQ21: Redevelopment of Old Buildings’, Press Releases, 12 February 2014, http://www.info.gov.hk/
gia/general/201402/12/P201402120339.htm.
83
Urban Renewal Authority website, http://ura.org.hk/tc/schemes-and-policies/rehabilitation/opera
tion-building-bright.aspx.
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Transformation after the return to China (1997–2015) · 339
Table 6.8 Distribution of private buildings aged 40 years or above in Hong Kong in 2013
District No. of District No. of District No. of
Council buildings Council buildings Council buildings
district district district
Hong Kong Island Kowloon New Territories
Central and 1,460 Yau Tsim 1,860 Tsuen Wan 300
Western Mong
Wan Chai 1,140 Kowloon City 1,580 North 190
Eastern 580 Sham Shui Po 1,200 Yuen Long 150
Southern 440 Kwun Tong 370 Kwai Tsing 120
Wong Tai Sin 280 Tai Po 80
Sha Tin 60
Sai Kung 30
Tuen Mun 30
Islands 20
Sub-total 3,620 5,290 980
Total 9,890
Source: ‘LCQ21: Redevelopment of Old Buildings’, Press Releases, 12 February 2014.
Conservation and reconstruction
It is not easy to demolish old and dilapidated buildings in urban areas for rede-
velopment. Compared with owners of ground-floor shops, residents in old
buildings have a greater desire for demolition. Old buildings are impaired and
pose a safety threat to residents, but shops located in downtown areas enjoy
higher pedestrian flows and easy sales. Therefore merchants are mostly against
demolition and redevelopment. The government faces great difficulties in
redevelopment, since it has to not only compensate property owners but also
take into account civil conservation issues. On 13 August 1997, the Planning,
Environment and Lands Branch approved the LDC’s proposed redevelopment
(H15) at Lee Tung Street/McGregor Street,84 which triggered an eight-year
dispute and changed the previous value concept of putting economic benefits
first.
The H15 redevelopment project could be traced back to November 1997,
when the Land Development Corporation presented the proposal to Wain
Chai Provisional District Board.85 In January 1998, the LDC announced Lee
84
University of Hong Kong, Executive Summary of the Study of the Achievements and Challenges of Urban
Renewal in Hong Kong, March 2010, p.3, http://www.ursreview.gov.hk/tch/doc/ES%20achievements%20
n%20challenges%20CHI%209-5-10.pdf.
85
Hong Kong Legislative Council, ‘Wanchai District Council Position Paper on Wanchai Redevelopment’,
LC Paper No. CB(1)196/04-05(03), October 2004, p.17, http://www.legco.gov.hk/yr04-05/chinese/
panels/plw/papers/plw1123cb1-196-3c.pdf; Ma Jiewei, Wu Junxiong and Lu Dale, eds, Xianggang wenhua
zhengzhi (Hong Kong’s Culture and Politics), Hong Kong, Hong Kong University Press, 2009, p.97.
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340 · MAKING HONG KONG
Tung Street in Wan Chai to be one of the 25 redevelopment projects and for-
mulated a development plan according to the Land Development Corporation
Ordinance. On 28 August 1998, the TPB approved the draft development plan
of Lee Tung Street/McGregor Street. The project was finally approved in 1999
under the Town Planning Ordinance but was then put on hold owing to the
financial turmoil. It was not restarted when the URA was established in 2001.
In October 2003, the URA carried out the Lee Tung Street project, with a price
tag of 3.58 billion dollars, at the request of some Legislative Councillors and
affected residents.
Lee Tung Street, commonly known as the ‘Wedding Card Street’, covered
an area of
about 8,900 square metres. It was built in the 1910s and rebuilt
in 1958 with 54 buildings, mostly tenement buildings, but there were also
Western-style buildings. The six-storey buildings were similar in style and
had interconnected rooftops. It was one of the few streets in Hong Kong with
intact buildings from the 1950s and 1960s. Although Lee Tung Street was
well known as the ‘Wedding Card Street’, it was not a trading centre of the
printing industry in its early days. Prior to the reconstruction in the 1950s,
there were tailor shops and barber shops in the street. Later there were also
construction firms and hardware workshops. Printing shops did not appear in
the street until the late 1950s. Offset printing shops were trend-setters of the
time, and there were also workshops printing envelopes, letterheads and busi-
ness cards. Shops offering the hot-stamping service or making wedding cards
did not appear until the 1980s. The printing shops served an extensive range
of customers both at home and abroad, thus bringing international fame to the
‘Wedding Card Street’.
There were 930 households affected by the redevelopment (including about
517 residential tenants) and nearly 100 merchants, with a total of 647 prop-
erty interests.86 It was the URA’s biggest redevelopment project before 2005.
Residents refused to accept the cash offer and made a ‘flat-for-flat, shop-for-
shop’ counter-offer to the URA. They requested properties in nearby Ship Street
in exchange as compensation, so that the local characteristics of wedding card
printing could be preserved in Ship Street. Residents opting for the ‘flat-for-flat’
approach would voluntarily forgo the URA’s compensations based on the value
of a notional replacement flat that was seven years old. Instead, they wanted to
move into Project H16 on Johnston Road on a ‘foot-for-foot’ basis and were
willing to pay the price difference between a new building and a seven-year
one.87 The URA, however, did not give any positive response. In March 2004,
the residents set out to design a ‘Dumbbell Proposal’ featuring a phased redevel-
opment, hoping to preserve the tenement buildings in the middle of Lee Tung
Street, so that tenants and merchants hoping to stay in such buildings could
86
Hong Kong Legislative Council, ‘Wanchai District Council Position Paper on Wanchai Redevelopment’,
LC Paper No. CB(1)263/04-05(04), November 2004, p.1, http://www.legco.gov.hk/yr04-05/chinese/
panels/plw/papers/plw1123cb1-263-4c.pdf.
87
Zhou Qiwei, Du Liji and Li Weiyi, eds, Huangfan fanfei chu: kan women de Lidongjie (Home Where the
Yellow Banners Fly), Hong Kong: v-artivist Co., 2007, p.192.
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Transformation after the return to China (1997–2015) · 341
move back to the street after the redevelopment. By so doing, they hoped to pre-
serve the characteristics of the community network and the printing industry, as
well as an intact street of the 1960s for Hong Kong.
As of 16 November 2004, the URA had successfully acquired 75 per cent of
the property interests. It rejected the ‘Dumbbell Proposal’, citing complexity.
The residents then submitted the proposal to the TPB for review. In March and
July 2005, the TPB rejected the residents’ proposal on two occasions, because,
among other things, the URA had acquired a majority of the property interests
and it would be difficult for the residents to implement the proposal without the
URA’s support. In the meantime, residents and merchants moved out one after
another. On 5 August 2005, the URA resumed the remaining unsold proper-
ties through the government under the Lands Resumption Ordinance. Residents
filed an appeal against the TPB’s decision in September 2005, and some tenants
refused to move out. On 5 November 2005, the government resumed all the
property interests.
The struggle over Lee Tung Street sparked a strong public outcry for preserv-
ing public spaces with collective memories. In the Lee Tung Street project, the
URA preserved the pre-war tenement buildings at 186–190 Queen’s Road East.
It also retained some buildings in the nearby Johnston Road project, as well as
the open-air bazaars in Tai Yuen Street and Cross Street. Those facts, together
with later incidents involving Wan Chai Market and the Blue House, were all
achievements of community participation.
In response to the public aspiration for conservation, experts were invited to
formulate conservation programmes for all future redevelopment projects in
the Metro Area. For the redevelopment of Nga Tsin Wai Village in Kowloon
(K1 Project) in early 2006, the strategy developed by a UNESCO conservation
consultant team was followed. To be specific, efforts were made to preserve the
gatehouse, the embedded stone tablet ‘Hing Yau Yu’ and the Tin Hau Temple.
In addition, the Central Axis, the lane pattern and eight village houses along the
Central Axis with intact historical architectural elements would be conserved.88
A conservation park would also be built centred around and spreading out from
the Central Axis, in order to feature the historical elements and other excavated
underground relics. Besides, in 2010, owing to the public attention aroused by
an award-winning film featuring Wing Lee Street,89 the URA announced that
it would excise the Staunton Street/Wing Lee Street Development Scheme
(H19 Project) and designate the area as a conservation zone.90 A condition
was imposed that any future redevelopment on the site should not exceed
four storeys. This would preserve the ambience of Wing Lee Street defined by
the proportion of height of the existing buildings to the width of the terrace.
Initiatives were taken to rehabilitate the properties acquired at Nos 5, 7, 8 and
88
‘LCQ7: Nga Tsin Wai Village Redevelopment Project’, Press Releases, 19 June 2013, http://www.info.
gov.hk/gia/general/201306/19/P201306190347.htm.
89
Urban Renewal Authority, ‘G7 Centre at Wing Lee Street’, http://www.ura.org.hk/tc/projects/herit
age-preservation-and-revitalisation/central/g7%20centre%20at%20wls.aspx.
90
Apple Daily, 17 March 2010, http://hk.apple.nextmedia.com/news/art/20100317/13829008.
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342 · MAKING HONG KONG
9 of the street and license them to NGOs and educational institutes for com-
munity services.91
‘Flat-for-Flat’ Pilot Scheme
In response to the proposal made by the affected owners and merchants at
Lee Tung Street, the government reviewed the 2001 Urban Renewal Strategy
between July 2008 and June 2010, and launched the ‘Flat-for-Flat’ Pilot Scheme
after public consultation. In other words, apart from the option of cash com-
pensation and ex gratia payment,92 owner-occupiers affected by redevelopment
projects commencing on or after 24 February 2011 could choose to be relocated
to a seven-year-old building in the same district.93 Owner-occupiers opting for
‘flat-for-flat’ could purchase units in URA new development projects built in
situ, or those in buildings constructed on earmarked sites for the purpose in Kai
Tak Development Area.94
In July 2011, the URA launched the ‘demand-led’ redevelopment model,
under which owners of 67 per cent (i.e. two-thirds) or more of the undivided
shares of the respective lots of a site might jointly submit an application to the
URA to initiate a redevelopment project.95 All applications received would be
screened to see if they met the following criteria:
1. A joint application should be submitted by owners of not less than 67 per
cent of the undivided shares in each lot within the site.
2. Building conditions of all buildings within the Site should be ‘poor’ or
‘varied’.
3. The site should be larger than 400 square metres. Unless there were special
needs or if the site under application could be combined with its adjoining
sites for joint development, smaller sites would not be considered.
4. The proposed project should be one that might be implemented under
section 26 of the URA Ordinance and redeveloped into a residential, com-
mercial or commercial/residential development.
5. The site should not consist of buildings or structures of historical, architec-
tural or cultural significance unless they could be integrated in the future
development.
6. If there were a District Urban Renewal Forum set up in the related district,
the site should be situated within a ‘redevelopment zone’ identified by the
91
Urban Renewal Authority, ‘G7 Centre at Wing Lee Street’, http://www.ura.org.hk/tc/projects/herit
age-preservation-and-revitalisation/central/g7%20centre%20at%20wls.aspx.
92
Hong Kong Development Bureau, Urban Renewal Strategy, Hong Kong, Development Bureau, 2011, p.3.
93
Urban Renewal Authority, Urban Renewal Authority, Hong Kong, Urban Renewal Authority, 2012, p.13.
94
Hong Kong Legislative Council Panel on Development, ‘Updated Background Brief on the Work of the
Urban Renewal Authority: Meeting on 24 June 2014’, LC Paper No. CB(1)1623/13-14(04), 17 June 2014,
pp.3–4.
95
Hong Kong Legislative Council Panel on Development, ‘Updated Background Brief on the Work of the
Urban Renewal Authority: Meeting on 24 June 2014’, LC Paper No. CB(1)1623/13-14(04), 17 June 2014,
p.2.
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Transformation after the return to China (1997–2015) · 343
forum (or at least not situated within a proposed preservation area identi-
fied thereby).96
As of September 2015, the URA had received 187 applications over four
rounds. Since 1988, the work and the pace of urban renewal have been continu-
ously adjusted in line with community aspirations.
Planning and reconstruction
Town plans specifying land uses in different areas and regions served as guidance
and regulation after the Second World War.97 Town plans in the 1960s would
be directly marked with land uses, such as ‘R’ for residential zones annotated ‘to
include residential’ or ‘to include shops’ to indicate the plots could be used for
commercial, industrial or residential purposes. But there was no detailed classifi-
cation. Starting in the 1970s, the Town Planning Ordinance was constantly under
pressure from public opinion. After each lawsuit, the government would review
the provisions and make amendments if necessary. For example, the amend-
ments in 1974 were related to the addition of the Planning Permission System,98
because the government lost a lawsuit filed by Hopewell Company against
the government’s failure to develop town plans according to the ordinance.99
Accordingly, the government needed to add a paragraph stipulating that, ‘for any
draft plan prepared before the commencement of the Town Planning Ordinance,
any amended diagrams, notes, etc. shall be deemed part of the draft plan’.
Land use zonings other than commercial, industrial or residential started to
appear on town plans, such as ‘comprehensive redevelopment area’ (CRA),100 as
in the case of Hopewell Centre. In the 1970s, CRA was renamed as ‘other speci-
fied uses’ annotated ‘comprehensive redevelopment area’ (OU(CRA)). CRA
was introduced because, under subsection (1) of section 4 of the Town Planning
Ordinance, land can be planned for residential, commercial, industrial or other
specified uses. In 1988, the government amended the Town Planning Ordinance
to change CRA to ‘comprehensive development area’ (CDA).
In 1989, the government lost a lawsuit involving the operation of con-
tainer back-up areas and open storage space on agricultural land in the New
Territories.101 Subsequently in 1991, the government extended the applications
of the Town Planning Ordinance to rural areas. In the same year, the government
consulted the public on the overall planning review.102 Subsequent amendments
included the addition of such land use zonings as open storage, country park,
96
Urban Renewal Authority, ‘Demand-led Redevelopment Project (Pilot Scheme)’, http://ura.org.hk/
tc/schemes-and-policies/redevelopment/ura-implemented-projects/demand-led.aspx.
97
Interview with Ophelia Wong Yuen-sheung, former Deputy Director of Planning, 27 February 2015.
98
Planning Department website, http://www.pland.gov.hk/pland_en/tech_doc/tp_bill/pamphlet2004/.
99
Interview with Fung Chee-keung, 20 March 2012.
100
See http://www.info.gov.hk/tpb/en/forms/Guidelines/pg17_e.pdf.
101
Interview with Fung Chee-keung, 20 March 2012.
102
Hong Kong Democratic Foundation website, http://www.hkdf.org/newsarticles.asp?show=newsarticl
es&newsarticle=167; Interview with Fung Chee-keung, 20 March 2012.
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344 · MAKING HONG KONG
agriculture, site of special scientific interest (SSSI) and other specified uses that
promote conservation or protection of the environment.
In 1998, the residential (Group E) zone was introduced,103 intended primar-
ily for phasing out existing industrial areas through redevelopment or conver-
sion for residential use. Such redevelopment projects, however, were subject
to application to the Town Planning Board, in order to avoid perpetuation of
industrial/residential interface problems. Tai Kok Tsui, for example, used to be
a stronghold of cottage factories. The Planning Department ‘rezoned’ the land
there for residential use, planning to tear down the factories and redevelop them
into residential areas. In response to the transformation of industrial land, the
‘other specified uses’ annotated ‘(business)’ (OU(B)) zone was introduced in
2000, primarily for general business use.
Besides, in response to social changes, the definition of ‘industrial’ use was
revised to include many non-traditional industries. The OU(MU) zone was sub-
sequently introduced, in place of the previous ‘commercial/residential’ (C/R)
use, because land zoned as the commercial/residential category could be used
for either or for mixed purposes most of the time. Chungking Mansions in Tsim
Sha Tsui is a good example. The OU(MU) concept also allows the coexistence
of commercial and residential uses, provided that they are on separate floors of
the same building, or in separate buildings of the same development. It is differ-
ent from the C/R zone of the past, which allowed residential and non-residential
uses on the same floor of the same building.
One of the purposes of land use planning is to control the future land use.
When a piece of land is planned for redevelopment, the current use of an exist-
ing building on the land can be preserved until there is a change in use or the
building is redeveloped.
Planners may specify public spaces in accordance with social needs. In some
cases, it is expected that the site can be converted into a public space after the
demolition of the existing old building, because the area is too crowded or there
are problems with the land lease. If the owner applies for a renewal with the
Lands Department upon the expiry of the land lease, the Planning Department
may raise an objection citing that the site has been reserved for public space,
pending the decision of the Lands Department.
The transformation of industrial zones started in the mid-1980s. At that time,
the then Town Planning Office conducted a study on the uses of industrial build-
ings and proposed the concept of industrial/office buildings (I/O buildings),
featuring higher standards under the Buildings Ordinance for either industrial or
office use. However, the problem of a large number of vacant industrial build-
ings arising from the relocation of industries to the Mainland in the 1990s could
not be addressed merely by conversion of individual buildings. In 2000, 2005,
2009 and 2014 respectively, the Planning Department undertook four rounds
of Area Assessments of Industrial Land in the Territory in order to examine the
usage of the existing industrial buildings in industrial areas and to consider their
103
See the Hong Kong Place website, http://www.hk-place.com/view.php?id=402.
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Transformation after the return to China (1997–2015) · 345
future planning to satisfy market needs and to better utilise the land resources.
On that basis, proposals were made on rezoning the land use and relaxing con-
trols on suitable old industrial areas, in particular for those in the Metro Area, so
as to expedite the transformation of old industrial areas into business areas104 to
meet the needs of the society.105
Revitalisation of industrial buildings can be carried out in two scenarios. For
industrial or industrial-office buildings within an OU(B) zone, provision of an
office therein only requires submission of an application under section 16 of the
Town Planning Ordinance to the Town Planning Board for approval, without
the need to amend the OZP. For open-air development or for a building other
than an industrial or industrial-office building in an OU(B) zone, ‘office’ use is
already permitted. However, application for amendments to OZPs would be
required for development of a hotel within an ‘industrial’ zone or an OU(B)
zone (for industrial buildings or industrial-office buildings).
When a property owner submits building plans for redevelopment, the
Buildings Department will consult the Planning Department and will only
approve the building plans with the latter’s vetting. It is not necessary to pay a
land premium for changing the land use in sites with an unrestricted lease. For a
lease with a user clause restricted for industrial purposes, a premium is required
for changing the user clause to residential purposes. The land premium is calcu-
lated based on the price difference per square foot of the land area.106
In Hong Kong 2030, the Planning Department suggests that it is not nec-
essary to demolish all industrial buildings for redevelopment. Instead, existing
resources can be optimised by change of use, such as the conversion of the former
Shek Kip Mei Flatted Factory Building into a creative arts centre.107 According to
the Planning Department, in conversion of industrial buildings to lofts, attention
should be paid to the Building Regulations and financial viability. It also proposes
converting industrial buildings into residences for senior citizens with related
facilities. The success of such a proposal will depend on the identification of oper-
ating agency and availability of appropriate financial options in the market to help
liquidise the assets of the elderly.108 The community generally supports the idea
of providing lofts or elderly housing at vacant industrial buildings through con-
version. However, the best development mode of such initiatives should be led
by the private sector, while the government should maintain its facilitating role.109
104
Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong
Kong, Planning Department, 2007, p.139.
105
Hong Kong Government Planning, Environment and Lands Branch, Territorial Development Strategy:
A Response to Change and Challenges: A Digest of Key Points, Hong Kong, Planning, Environment and Lands
Branch, 1998, p.30.
106
Interview with Wilson Chan Wai-shun, Assistant Director of Planning, 27 February 2015.
107
Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong
Kong Planning Department, 2007, p.139.
108
Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong
Kong Planning Department, 2007, p.135.
109
Hong Kong Planning Department, Hong Kong 2030: Planning Vision and Strategy: Final Report, Hong
Kong Planning Department, 2007, p.135.
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346 · MAKING HONG KONG
Starting from April 2010, the Development Bureau promulgated the Policy
of Revitalising Industrial Buildings in order to encourage redevelopment and
wholesale conversion of old industrial buildings for other purposes. By the
end of January 2016, there had been a total of 180 applications for conversion
and 22 applications for redevelopment, of which 103 conversion applications
and 20 redevelopment applications were approved by the Lands Department.
Most of them were located in Kwun Tong and Kwai Chung, and the major
proposed new uses for the converted buildings included office, eating place,
shop and services, and hotel. For the approved applications for redevelop-
ment, they were mainly situated in Kwun Tong, Yau Tong, Cheung Sha
Wan, Kwai Chung and Wong Chuk Hang, and the proposed new uses after
redevelopment included residential, commercial and hotel.110 The expected
results of optimising the use of industrial buildings have been achieved under
the policy, and the vacancy rate of industrial buildings has dropped steadily to
a low level over the past few years. Therefore the policy was ended at the end
of March 2016.111
Rural conservation
It was not until the beginning of the twenty-first century that conservation of
the natural environment in Hong Kong gradually became an indispensable goal
in town planning for the general public. The awareness of nature conservation
was weak among the public in the 1990s, when the related work was promoted
by the Government alone. The New Territories, with a large area, would easily
cause disputes over property interests and land uses in development projects
by individuals or private companies. And there are more projects in the New
Territories involving nature conservation compared with the urban area. The
Government not only has to bear legal costs, but faces delays in its conservation
work as well. In the meantime, related problems are yet to be solved. A case in
point was the legal actions taken by the Government and a private company
against each other in 1994–96 regarding the disputes over nature conservation
in Nam Sang Wai, Yuen Long. It showed the disputes over the relations between
conservation and development.
Ecological protection of wetland conservation areas
In 1993, in order to protect the natural environment in Mai Po and Inner Deep
Bay, with a total area of 2,000 hectares, the TPB promulgated guidelines on plan-
ning permission applications for developments in Deep Bay Buffer Zone.112 The
move soon faced legal challenges by a private developer. In 1994, Henderson
110
Optimising the Use of Industrial Buildings to Meet Hong Kong’s Changing Economic and Social Needs
website, http://www.devb.gov.hk/industrialbuildings/chi/implementation_progress/index.html.
111
http://www.policyaddress.gov.hk/2016/chi/p117.html.
112
Hong Kong Town Planning Board, Town Planning Board Annual Report 1994, Hong Kong, Government
Printer, 1995, p.78.
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Transformation after the return to China (1997–2015) · 347
Real Estate Development Agency Limited applied to construct a large residen-
tial and golf course project in Nam Sang Wai and Lut Chau within a conserva-
tion area of Deep Bay Buffer Zone. After the application was rejected by the
TPB, an appeal was lodged by the applicant and allowed by the Town Planning
Appeal Board in August 1994.113 It turned out that, on the relevant development
permission area plan, most parts of the area were zoned for ‘unspecified use’,
while a small portion was zoned as ‘residential (Group C)’ zones or ‘sites of
special scientific interest’.114 According to the TPB, Henderson’s development
proposal would destroy the nature conservation and planning in Mai Po and
Inner Deep Bay, so the TPB decided to apply for a judicial review115 and imme-
diately revised the guidelines for planning permission applications for develop-
ments in Deep Bay Buffer Zone. The revised version stipulated the planning
objectives and principles for Deep Bay Buffer Zone, and requested developers
to provide an ecological study report for a minimum period of 12 months.116
Besides, it proposed the establishment of an official or semi-official institution
to properly manage Deep Bay Buffer Zone and to assemble vulnerable land
within the zone. It also proposed designating Mai Po Nature Reserve and Deep
Bay Buffer Zone as a wetland of international importance (as waterfowl habitat)
under the Ramsar Convention.117
The judicial review applied by the TPB was rejected by the High Court in
April 1995. The TPB filed an appeal. In January 1996, the Court of Appeal
allowed the TPB’s appeal and revoked the High Court’s order.118 Henderson
Real Estate Development Agency Limited objected to the ruling by the Court
of Appeal and subsequently appealed to the British Privy Council, the Judicial
Committee of which ruled in favour of Henderson by a majority of votes119 in
December of the same year, which placed the government’s conservation work
into difficulties.
After that, the government amended the relevant town plan. In 1997, the
Planning Department submitted the results of the Study on the Ecological Value
of Fish Ponds in Deep Bay Area to the TPB. In 1998, the TPB adopted the TPB
guidelines for developments within Deep Bay Area and recognised the need
for a balance between nature conservation and other planning factors, so that
ecological preservation could be achieved without impeding necessary public
113
Hong Kong Town Planning Board, Town Planning Board Annual Report 1994, Hong Kong, Government
Printer, 1995, p.79.
114
Hong Kong Town Planning Board, Town Planning Board Annual Report 1995, Hong Kong, Government
Printer, 1996, p.68.
115
Hong Kong Town Planning Board, Town Planning Board Annual Report 1994, Hong Kong, Government
Printer, 1995, p.79.
116
Hong Kong Town Planning Board, Town Planning Board Annual Report 1994, Hong Kong, Government
Printer, 1995, p.78.
117
Hong Kong Town Planning Board, Town Planning Board Annual Report 1994, Hong Kong, Government
Printer, 1995, p.80.
118
Hong Kong Town Planning Board, Town Planning Board Annual Report 1995, Hong Kong, Government
Printer, 1996, pp.69–70.
119
Hong Kong Town Planning Board, Town Planning Board Annual Report 1996, Hong Kong, Government
Printer, 1997, pp.65–66.
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348 · MAKING HONG KONG
infrastructure projects or conventional development needs in the area.120 In
1999, the TPB revised the TPB guidelines for planning applications for devel-
opments within Deep Bay Area to exert control on land use planning. Existing
active or abandoned fish ponds were designated as wetland conservation areas
and wetland buffer areas, any uses of which would need to be supported by eco-
logical impact assessments with wetland compensatory measures as necessary as
well as the approval of the TPB.121 Those measures were adopted for the benefit
of ecological protection of wetland conservation areas.
Conservation of Sha Tau Kok FCA
Impacts of the incident involving Nam Sang Wai and Lut Chau in Yuen Long
further spread to the 2,800-hectare frontier closed area (FCA) between Hong
Kong and Shenzhen. The FCA, accessible only to holders of special permits in
the past, saw its role significantly weakened after Hong Kong’s return to China.
In January 2008, the government announced a three-phase reduction of the FCA
to 400 hectares. The first phase, implemented on 15 February 2012, covered the
Mai Po to Lok Ma Chau Boundary Control Point section and the Lin Ma Hang
to Sha Tau Kok section, with a reduction of 740 hectares.122 The second phase,
implemented as from 10 June 2013, covered the Lok Ma Chau Control Point to
Ng Tung River section, with a reduction of 710 hectares.123 The FCA had always
been an area prohibited for development. So what purpose would the freed-up
land serve after the FCA reduction? After learning a lesson from the disputes
involving rural developments in the 1990s, the government carried out active
land planning for the FCA. The Planning Department conducted a study on this,
and its recommendations were incorporated by the TPB into the statutory plan.
In July 2010, the Planning Department completed the Study on the Land Use
Planning for the Closed Area and formulated a development plan featuring ‘a
belt of conservation, cultural heritage and sustainable uses between Hong Kong
and Shenzhen’.124 It was proposed to conserve the western part of the FCA,
including the wetlands and the fish ponds at San Tin and Hoo Hok Wai. It was
also proposed to build Hong Kong’s first eco-lodge development on the hill
slopes of Ma Tso Lung, with views overlooking the picturesque wetlands. For the
eastern part, Robin’s Nest would be designated as a country park, which would
120
Hong Kong Town Planning Board, Town Planning Board Annual Report 1998, Hong Kong, Government
Printer, 1999, p.56.
121
Hong Kong Town Planning Board, Town Planning Board Annual Report 1998, Hong Kong, Government
Printer, 1999, p.58; ‘Guidelines for Deep Bay Area Developments Revised’, Press Releases, 9 April 1999, http://
www.info.gov.hk/gia/general/199904/09/0409179.htm.
122
Hong Kong Legislative Council Panel on Development, ‘Land Use Planning of the Frontier Closed Area’,
LC Paper No. CB(1)1312/12-13(02), June 2013, p.1, http://www.legco.gov.hk/yr12-13/chinese/panels/
dev/papers/devcb1-1312-2-c.pdf.
123
Hong Kong Legislative Council Panel on Development, ‘Land Use Planning of the Frontier Closed Area’,
LC Paper No. CB(1)1312/12-13(02), June 2013, p.1, http://www.legco.gov.hk/yr12-13/chinese/panels/
dev/papers/devcb1-1312-2-c.pdf.
124
Planning Department, Planning Department Annual Report 2010, Hong Kong, Planning Department,
2010, https://www.pland.gov.hk/pland_en/press/publication/ar_10/tradchi/focus2.html.
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Transformation after the return to China (1997–2015) · 349
then form a continuous ecological link between Pat Sin Leng in North East New
Territories and Wutongshan in Shenzhen. For the central part, the recommen-
dation was to preserve and strengthen the agricultural land and villages of herit-
age value, together with leisure farming, recreational activities and low-density
housing developments. Besides, there would be a 30-kilometre hiking trail and a
cycling track to link the ecological attractions, buildings of architectural and his-
toric interest and activity nodes, in order to promote eco- and cultural tourism in
the area. It was also proposed to establish three development corridors, so as to
take advantage of the direct connection to the existing boundary control points
at Lok Ma Chau and Man Kam To, as well as to the proposed one at Liantang/
Heung Yuen Wai. Such corridors would be developed for commercial, retail,
entertainment and wholesale centres in the future.125 (See Figure 6.7.)
There are different views in society as to land development. Some prefer
turning green land into an area for houses, saying that developing just 1 per
cent of the country park areas for residential projects would be sufficient to
provide homes for 90,000 people. Others think country parks should be off
limits and even ask for more green space. Disputes relating to conservation and
development continue and remain an eternal topic in planning. Ling Kar-kan,
Director of Planning, remarks that land is a precious resource for Hong Kong
and land development should be subject to rigorous research and reasoning.
Integrated planning and high-density orderly development would be the most
efficient way to use the limited land resources in Hong Kong and to achieve
the best social benefits. To serve a large number of intensive population and
economic activities, it is necessary to construct traffic and infrastructure facili-
ties of large capacities, which often means huge public investments and the use
of substantial public money. Their operation even involves costs of long-term
management and maintenance. Planning should be optimised, so that both
government and public resources can be utilised in the most rational way. The
government’s current review of green belts, for example, focuses on urban areas
or the fringes of new towns already with road access and infrastructure facilities.
Through careful planning research, plots with a relatively low buffering effect
and conservation value are identified for development. Good use can be made
of the existing infrastructure in such areas, avoiding investment in the construc-
tion of new roads. Roads are very important in that they are not just traffic
channels but, more importantly, infrastructure service corridors as well. Many
public utility facilities, such as water pipes, drainage pipes, wires and so on, are
distributed evenly under roads. For new development zones located in remote
mountainous areas, the costs of road construction are even higher than those of
site formation. Therefore, trade-offs and analysis are required in planning.
Owing to their remoteness, the boundary areas have been free from the
impacts of urbanisation, with the original villages and natural environment there
125
Planning Department Annual Report 2010, http://www.pland.gov.hk/pland_en/press/publication/
ar_10/tradchi/focus2.html.
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M4593-HO_9781788117944_t.indd 350
Source: Hong Kong Planning Department, ‘Land Use Planning for the Closed Area – Feasibility Study’, July 2010, http://www.pland.gov.hk/pland_en/misc/FCA/frontier_chi/frontier_c_study.htm.
Figure 6.7 Coverage of the FCA
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Transformation after the return to China (1997–2015) · 351
being intact. They are important assets of Hong Kong and have aroused much
public attention.
New trends in planning
Planning policies in the first few years after Hong Kong’s return featured envi-
ronmental protection and sustainable development as the new direction.126
The strategic land use planning study in the TDSR published in February 1998
changed the ‘land use–transport’ duo to the ‘land use–transport–environment’
trio.127 In the face of global climate anomalies, natural ecological imbalance,
shortage of resources and other problems, both the community and the govern-
ment have attached greater importance to environmental protection in order to
strike the right balance between development and environmental protection.
People in Hong Kong started to reflect on the impacts of pursuing rapid eco-
nomic development and luxury living on the environment and the ecology, and
subsequently became active in promoting environmental protection. The TDSR
estimated that the local population would increase to 8.1 million by 2011 with
the city’s increasingly important status as a regional hub, and that the acceler-
ated process of urbanisation would pose a greater pressure on the environment.
(Although the actual population of Hong Kong was only 7.07 million in 2011,
it meant an increase of 2.07 million and 1.4 million compared with 5 million
in 1981 and 5.67 million in 1991, respectively.) The government enacted the
Environmental Impact Assessment Ordinance in 1998 to monitor the adverse