Hong Kong deputy development chief outlines plans to speed up old-district redevelopment
Hong Kong's deputy development secretary detailed measures to accelerate urban renewal, including a review of the 'seven-year equivalent' compensation, expanded floor-area ratio transfers, and a HK$40 billion five-year plan. The government aims to publish reform proposals for public consultation nex
The Hong Kong deputy secretary for development, in a Legislative Council speech on 28 October 2026, outlined the government's strategy to accelerate old-district redevelopment. Responding to a motion by lawmaker Wong Ho-ming and three amendments, the official thanked more than 30 legislators for their views, promising to incorporate them into future work.
The official stressed that urban renewal is not solely about demolition and rebuilding. The government's strategy also includes building repair, revitalisation of older areas, and heritage conservation. Demolition is sometimes unavoidable for buildings that are too old for economical repair or have outdated designs, such as those requiring stairs to reach lifts, posing challenges for the elderly or wheelchair users.
A key issue raised was the Urban Renewal Authority's (URA) compensation and resettlement arrangements, particularly the 'same-district, seven-year-old flat' compensation mechanism. The official noted that after more than 20 years, some question whether this is too generous or hinders private acquisitions. The ongoing review of the URA's finances and operations will comprehensively examine this mechanism.
Regarding the 'flat-for-flat' option, the official said the current arrangement, which provides cash first and requires residents to arrange interim housing, is unattractive. The review will explore improvements. The government has also reserved three sites in the new development areas of Kwu Tung North and Fanling North for the URA to build flats for future 'flat-for-flat' exchanges.
The official announced a HK$40 billion (US$5.1 billion) five-year URA plan for urban renewal, mainly for acquisition and redevelopment. To encourage private sector participation, the government revised the compulsory sale ordinance in 2024, lowering the threshold to 65 per cent for older buildings. Two innovative measures introduced this year—cross-district transfer of floor-area ratios and a pilot scheme for additional ratios—apply to seven old districts, including Tsuen Wan, to make projects more financially viable.
On the 'Thirteen Streets' project, the official described challenges including high density, 83 buildings with over 4,000 households, and mixed uses with many garages. Splitting the project into smaller parcels may not solve the problem. The government has implemented over 100 streamlining measures since a 2024 directive requiring a 'facilitator' mindset, and introduced a three-tier monitoring system for large projects with over 500 residential units to ensure timelines are met.
The official concluded by acknowledging the urgency of addressing building ageing and pledged continued dialogue with legislators and stakeholders to refine policies and improve residents' living environments. The review's recommendations are expected to be published for public consultation next year.
