Hong Kong secretary outlines policy push to accelerate urban renewal
Hong Kong's development secretary detailed government policy to speed up urban renewal, noting building ageing outpaces reconstruction. Measures include a pilot floor-ratio transfer scheme and a review of the Urban Renewal Authority's financial model, with proposals due in early 2027.
Hong Kong – 28 October 2026 – The Secretary for Development told the Legislative Council on 28 October that the government is stepping up efforts to accelerate urban renewal as the city faces a growing gap between building ageing and reconstruction.
In an opening speech for a member's motion on “speeding up old-district redevelopment”, the secretary said Hong Kong has seen the number of buildings aged 50 years or older increase by about 500 per year over the past decade, while only about 160 buildings were rebuilt annually. The government aims to tackle this mismatch through both public and private sector efforts, he added.
The Urban Renewal Authority (URA) has launched 69 redevelopment projects since its establishment in 2001, providing about 36,000 new residential units. The secretary stressed the authority must maintain financial sustainability. The government has injected HK$10 billion in initial capital, exempted land premiums for URA projects, allocated government land for suitable redevelopments, and raised the URA's borrowing limit.
However, recent property market conditions have put the URA's cash flow under significant strain, the secretary noted. The Development Bureau and the URA are now jointly reviewing the authority's financial and operational model, including the “seven-year-old building” cash compensation policy and the “flat-for-flat” arrangement. The review is expected to produce concrete proposals for consultation in the first half of 2027.
The secretary also highlighted the role of the private sector, which accounted for about 80 per cent of new residential units from all redevelopment projects in the past decade. The government amended the Land (Compulsory Sale for Redevelopment) Ordinance in 2024 to lower the compulsory sale threshold in seven designated districts and facilitate applications for contiguous sites.
Three further measures announced in last year's Policy Address are now being implemented, the secretary said. These include reserving three sites in the Northern New Territories for the URA to build flats for “flat-for-flat” exchanges; implementing a cross-district floor-ratio transfer scheme; and launching a five-year pilot programme from September 2026 that allows适度 increases in floor ratios for private redevelopments in seven designated areas, with developers able to convert additional floor ratios into monetary value for land premium purposes.
The Development Bureau issued a joint practice note in August 2026 and revised Town Planning Board guidelines to operationalise the latter two measures, the secretary added. He expressed hope the market would take advantage of these initiatives to boost urban renewal.