XN000022-1993-06-09 — Page 24

10

WEDNESDAY, JUNE 9, 1993

ANOTHER SIGNIFICANT SOURCE OF LAND FOR

RESIDENTIAL PURPOSES COMES FROM REDEVELOPMENT. IN THE THREE-YEAR PERIOD 1989-90 TO 1991- 92, LAND EXCHANGES AND LEASE MODIFICATIONS, WHICH ARE LARGELY IN EFFECT REDEVELOPMENT CASES, PRODUCED 95 HECTARES OF LAND. THESE FIGURES SHOW THAT REDEVELOPMENT IS A MAJOR SOURCE OF DEVELOPABLE LAND, ACCOUNTING FOR ABOUT 42% OF THE TOTAL AMOUNT OF LAND AVAILABLE FOR RESIDENTIAL PURPOSES. IN THE SAME PERIOD, APPROXIMATELY 50,000 FLATS WERE PRODUCED THROUGH REDEVELOPMENT. SINCE JUST OVER 8,000 FLATS WERE DEMOLISHED, THIS RATE OF EXCHANGE OF NEW FOR OLD 18 EXTREMELY FAVOURABLE. PROVIDED REDEVELOPMENT CAN CONTINUE APACE, THIS PATTERN SHOULD BE MAINTAINED.

PROCESSING OF DEVELOPMENT PROPOSALS

ANOTHER FACTOR WHICH AFFECTS THE RATE AT WHICH RESIDENTIAL 1 ITS CAN COME TO THE MARKET ARE THE LAND ADMINISTRATION, BUILDING CONTROL AND PLANNING PROCESSES. WE ARE KEEN ΤΟ ENSURE THAT THE PROCESSING OF DEVELOPMENT AND REDEVELOPMENT PROPOSALS IS STREAMLINED 15 FAR AS POSSIBLE AND WR MONITOR THE SITUATION CLOSELY IN CONSULTATION WITH THE LAND AND BUILDING ADVISORY COMMITTEE. AN AD HOC GROUP SET UP BY THE COMMITTEE IS CURRENTLY EXAMINING EXISTING SYSTEMS WITH A VIEW TO IMPROVING THE PROCEDURES WHERE POSSIBLE.

I SHOULD LIKE TO TAKE UP A FEW POINTS RAISED BY MEMBERS IN THE OURSE OF THE DEBATE. FIRST OF ALL I SHOULD LIKE TO REPEAT SOMETHING LECH I HAVE SAID VERY RECENTLY IN THIS COUNCIL.. AND THIS IS THAT DEVELOPERS ARE NOT PERMITTED TO HOARD NEW LAND. THEY ARE REQUIRED UNDER BUILDING COVENANTS TO COMPLETE DEVELOPMENT TO CERTAIN VALUE AND CERTAIN GROSS FLOOR AREA WITHIN FIXED PERIODS. SECONDLY I THINK WE MUST BEAR IN MIND THAT THE MASS PRODUCTION OF HOUSING WHICH IS WHAT IS ESSENTIAL ΤΟ THE TASK OF MEETING DEMANDS WHICH ARE PLACED UPON US REQUIRE MAJOR RESOURCES, AND THAT ALSO THAT MASS PRODUCTION REDUCES COSTS TO THE CONSUMER. IF WE ARE TO RELY ON PRODUCTION OF HOUSING BY SMALLER DEVELOPERS ON SMALLER SITES, WE CANNOT EXPECT THE ('OSTS AND THEREFORE THE PRICES OF SUCH A PRODUCT TO BE LOWER THAN THE MASS PRODUCED PRODUCTS. I SHOULD ALSO LIKE TO CONFIRM THAT CONTRARY ΤΟ POPULAR BELIEF, ALTHOUGH THERE ARE A NUMBER OF MAJOR PLAYERS WHO ARE WELL KNOWN IN THE PROPERTY DEVELOPMENT SECTOR IN HONG KONG, THERE ARE IN FACT NEW PLAYERS COMING ONTO THE SCENE. I SHOULD ALSO LIKE то CORRECT THAT THE IDEA THAT AS REGARDS GOVERNMENT'S POLICY ON LAND PRICES, GOVERNMENT'S POLICY TO SELL LAND ON THE MARKET, IT IS THE MARKET WHICH DECIDES THE PREMIUM FOR LAND AND NOT THE GOVERNMENT. LONG TERM HOUSING STRATEGY IS JUST THAT, WITH THIS SORT OF PROGRAMME, WE NEED TO ASSESS DEMAND, PLAN SUPPLY, INCLUDING THE INFRASTRUCTURAL SUPPORT REQUIRED, AND REVIEW REGULARLY, KEEPING OUR TARGETS FIRMLY MIND. WE CANNOT PRETEND, HOWEVER, THAT THE LONG TERM HOUSING STRATEGY CAN BE CONVERTED INTO A SUDDEN MIRACLE, HOWEVER DESIRABLE THIS MAY APPEAR AS A POLITICAL AIM. I HAVE NO DOUBT THAT WE WOULD HAVE A CHANCE ΤΟ

DISCUSS SOME OF THE OTHER POINTS OF MISUNDERSTANDING AND ENQUIRY ABOUT LAND PLANNING AND PRODUCTION AND HOUSING PROGRAMMES AND POLICIES WITH MEMBERS IN THE HOUSING AND LANDS AND WORKS PANELS OVER THE COMING MONTHS. IT SEEMS FROM THIS EVENING'S DEBATE TO BE PLENTY OF SCOPE FOR THIS.

THE

IN

/LAND PRODUCTION