URA

MANAGEMENT DISCUSSION AND ANALYSIS 53 District-based Approach By commencing a grouping of six projects in To Kwa Wan, the URA has taken steps to optimise the potential of larger clusters of dilapidated buildings in need of redevelopment. This can achieve more meaningful urban renewal benefits by creating a more community-friendly environment with a refined urban grid and appropriate land uses. The Operating Review of this report introduces the district-based approach and provides details of these To Kwa Wan projects and their related planning and social gains. The chapter on Corporate Sustainability explains the people-oriented “Project Engagement” Programme directed at the affected residents. The URA commenced the YMDS in 2017. Previous urban renewal studies have sought to identify isolated redevelopment and other opportunities under the 4Rs. The essence of the YMDS, however, is a complete paradigm to achieve a more holistic district-based urban renewal approach by exploring new Institutional and Implementation strategies that integrate the 5Rs, including retrofitting, with a time dimension. It will dissect the often-elusive opportunities to optimise development potential, such as through the transfer of plot ratio, and it will not shirk the formidable task of examining the constraints of the prevailing legislative and institutional framework. The YMDS will make an attempt to formulate implementable and financially- sustainable projects as part of a wider set of district- based renewal strategies under the 5R initiatives that can be readily applied elsewhere in Hong Kong’s older districts. *HKSAR Government, Rating & Valuation Department, Hong Kong Property Review Monthly Supplement, July 2018 Figure 1: Private Domestic Price Index May 2001 - April 2018 - All Classes* Year Q1 2002 Q1 2001 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Index 0 500 1000 1500 2000 2500 3000 Year Price Index 0 50 100 150 200 250 300 350 400 450 2002 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2018 *Rider Levett Bucknall, Quarterly Construction Cost Update, June 2018 Figure 2: Quarterly Construction Tender Price Index 2001 - 2018* Year Q1 2002 Q1 2001 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Index 0 500 1000 1500 2000 2500 3000 Year Price Index 0 50 100 150 200 250 300 350 400 450 2002 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2018 Meanwhile, the URA has kept in view the effectiveness of the Demand-led (Pilot Scheme), which began after the Urban Renewal Strategy was issued in 2011 and is designed to harness the collective willingness of owners to help initiate urban renewal themselves. The scheme was first reviewed in 2014 with a view to enhancing the planning gains of projects. However, the refinements were still not conducive to the scheme’s objectives, necessitating a more holistic review. The scheme is now being reviewed under the strategic Yau Mong District Study (YMDS) described below.