Provide sufficient land to achieve our housing target

The Chief Executive has just announced in this year’s Policy Address that the Government has decided to accept the recommendations on the housing target for the next 10 years made by the Long Term Housing Strategy Steering Committee. He also laid out his vision to make preparations for Hong Kong’s future economic and social development. To realise this target and vision, a sustainable and sufficient land supply is of vital importance.

The Government is forging ahead with a number of major land development planning and infrastructural works. These include expanding existing new towns such as Tung Chung; taking forward the development of the Fanling North, Kwu Tung North and Hung Shui Kiu New Development Areas; planning for the development of brownfield sites in rural areas in the New Territories such as those in Yuen Long South; exploring the further development potential of the New Territories North; conducting long-term planning for the Lantau development; and considering reclamation outside Victoria Harbour and optimising the use of rock caverns and underground space. However, these land development projects take a long time to complete. Given the urgent need for land in the short and medium term to meet the housing target of providing 470 000 residential units in the coming 10 years to assist the numerous people who are waiting to move into public rental housing as soon as possible, and to ensure a stable and healthy development of the private property market, this is a great challenge for both the Government and the community.

Land use reviews
Built-up land, which accounts for nearly a quarter of the total land area of Hong Kong, is usually provided with better infrastructure and supporting facilities. To increase land supply in the short term, it is a natural choice to review the suitability of built-up land and its surrounding areas for further development. To this end, my colleagues in the Development Bureau and other departments have been working hard to carry out land use reviews, including reviews of Green Belt (GB) sites in the fringe of built-up areas that are closer to existing urban areas and new towns, and reviews of Government, Institution or Community (GIC) sites, industrial and other non-residential sites, vacant government sites, or those under short-term tenancies or other temporary uses, so as to identify land which is suitable for conversion to residential use. Regarding those GB sites, though vegetated, they have relatively less buffering effect and lower conservation value. As these sites are close to supporting infrastructure facilities, including those related to transport, water supply and sewerage, etc., they are considered to have good potential to be rezoned for housing purpose. Furthermore, the Government will act decisively. If the original intended use of a site is no longer required, we will swiftly consider converting the land for housing development or other uses that meet the more pressing needs of the community, so as to optimise the use of our precious land resources.

In “My Blog” on November 24 last year, I reported on the initial progress of the work mentioned above. It is found from our overall review that in the past year or so, we have identified about 80 additional sites in various districts with a total area of over 150 hectares that have the potential to be rezoned for residential use. These sites can be made available in the next five years to provide about 89 000 residential units. In addition, with the implementation of various initiatives to increase land supply proposed in the 2013 Policy Address, there are about 150 sites which require amendments to their respective statutory plans for rezoning to residential use or increase in development intensity. It is expected that they will be made available in the next five years for the production of about 210 000 additional public and private units. Before that, we will discuss with the respective District Councils and go through the necessary town planning procedures. Some sites may also require land resumption, clearance or relocation of existing or planned facilities.

Increasing development intensity as appropriate
Apart from conducting land use reviews, increasing the domestic floor areas of built-up areas by increasing their development intensity as appropriate is also a preferred option to optimise the use of our precious land resources. Taking into account the various planning factors, we consider it feasible to generally increase the maximum domestic plot ratios currently permitted for the various density zones in the territory. More specifically, except for the north of Hong Kong Island and Kowloon, which are more densely populated (i.e. Residential Density Zone 1 of Main Urban Areas), the domestic plot ratio of Residential Density Zones 2 and 3 of Main Urban Areas and Residential Density Zones 1, 2 and 3 of New Towns can be generally increased by 20 per cent. Whereas, the domestic plot ratio of Zone 4 of New Towns, which is relatively low in density, can be increased by 100 per cent. (Currently, most of the existing buildings in Zone 4 of New Towns are only three-storey high. The building height can be relaxed to about six storeys after the increase of domestic plot ratio.)

Increasing the maximum domestic plot ratio does not mean that the development intensity of all housing sites will be increased automatically. We will set the maximum domestic plot ratio for future residential sites (including the abovementioned newly identified sites) and areas covered in the future planning studies under the new development intensity framework. For example, after the preliminary technical assessment, the plot ratio of a number of residential sites in the Kai Tak Development Area will be increased, and the housing units to be provided will increase from 33 190 to 40 040, representing an increase of 6 850 units (or about 21 per cent). In Tuen Mun East, with the increase in plot ratio and identification of new residential sites, the additional residential units to be provided will increase from 1 000 to about 8 000 in the coming five years.

I understand that the public may have concerns about the proposed rezoning of sites for residential use and increase of development intensity. However, I must emphasise that the proposals are made after due consideration. As in the past, we will continue to complete all the necessary town planning procedures step by step, and consult the respective District Councils and relevant stakeholders. We will take into account the practical planning circumstances and considerations of individual sites to ensure the provision of adequate transport infrastructure, utilities services and community facilities in accordance with the Hong Kong Planning Standards and Guidelines. We will also bear in mind factors like technical constraints, local characteristics and existing development intensity, as well as the possible impacts on the environment, landscape and air ventilation, etc. brought about by the proposed increase in development intensity. If individual GB sites are to be rezoned for residential use, the Government will strive to minimise the impacts on the environment by requesting the persons-in-charge of the projects to preserve or relocate existing trees with conservation value, or replant new trees according to the existing greening guidelines and tree conservation mechanism.

Given the current acute shortage of land and housing supply, conducting land use reviews and increasing the development intensity as appropriate are the most effective ways to increase housing supply in the short term. It is a difficult challenge faced by both the Government and the community. As there are not many easy and feasible options, the society has to make hard choices and accept trade-offs. Particularly, I hope that the District Councils and the local community can put the overall housing needs of the community above their personal and local interests, and fully support the rezoning of these sites for residential purpose and the increase of development intensity. We will do our best to expedite all the necessary procedures and supporting works projects so that the sites can be made available for housing development as soon as possible. With the community’s full support, we will be able to provide sufficient land in the short and medium term to achieve our housing target.

19 January, 2014

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