Page 10 - Urban Renewal Authority 2023-24 Annual Report

CHAIRMAN’S STATEMENT

Multiple Initiatives to Strengthen the Promotion of Building Rehabilitation
As mentioned in the introduction of my statement, building owners often encounter difficulties when they try to
organise repair and maintenance work on their own. To address the issue, the URA has, in the past year,
enhanced various measures to help owners carry out building rehabilitation. We have also worked closely with
various Government departments and professional bodies to promote building rehabilitation and provide
support to owners, enabling them to fulfil their responsibilities.
The URA has been assisting the Government in implementing various subsidy schemes for building rehabilitation
and facilities improvement. As of June this year, the URA has approved more than 21,000 applications. The URA
and the five Government subsidy schemes have benefited over 700,000 flat units, with a total subsidy amount of
over HK$2.8 billion being disbursed.
In April this year, the URA funded a new Preventive Maintenance Subsidy Scheme designed to promote the
concept of “preventive maintenance” among property owners of newer buildings. The scheme encourages
building owners to develop periodic property maintenance plans and build financial reserves to upkeep their
buildings.

The first Building Rehabilitation Resource Centre (BRRC) in Hong Kong was opened to the public in July last year.
Serving as a facilitation and educational hub, the BRRC is dedicated to enhancing the awareness and capabilities
of building owners in organising building maintenance projects. Additionally, it provides meeting spaces for
owners to discuss topics related to building maintenance concerns.

To align with the directive in the Policy Address to review the workflow of Operation Building Bright 2.0 (OBB
2.0), the URA, the Buildings Department and the Home Affairs Department jointly established a regular
communication platform. This initiative aimed to help Owners’ Corporations (OCs) involved in OBB 2.0 in
effectively organising the necessary maintenance works and to facilitate the prompt appointment of registered
inspectors and contractors for owners who have not yet complied with Government’s mandatory inspection
orders.
Additionally, the URA partnered with the Hong Kong Institute of Housing to promote the “Joint Property
Management” (JPM) as part of the District-based Building Rehabilitation Pilot Scheme in Kowloon City. By
assisting OCs of older single blocks in collectively engaging a service provider in property management, this
initiative enables building owners to access property management services at more affordable rates, ultimately
contributing to improved building conditions and living environment.

Overcoming Obstacles with Strategic Approaches
As urban renewal requires substantial resources, it is crucial for the URA to devise effective strategies and secure
stable financial resources to progress urban renewal in a sustainable manner.
In the financial year 2024/25 and the subsequent year, the URA will initiate acquisition offers for five projects,
with an estimated total acquisition cost of about HK$30 billion. Together with other ongoing projects that
commenced in previous years, and the redevelopment of the Tai Hang Sai Estate, the total expenditure on
property acquisition and construction is projected to reach around HK$64.3 billion. Given that the existing cash
reserves of approximately HK$18 billion fall short of covering these expenses, the URA has developed strategies
to tackle this challenge.

In terms of securing a steady stream of revenue, the URA plans to put on tender three projects namely Kai Tak
Road/Sa Po Road Project, Shantung Street/Thistle Street Project and Development Areas 4 and 5 of the Kwun
Tong Town Centre Project in 2024/25. The upfront payments received from these tenders will replenish the
required cash flow and support property acquisitions for upcoming redevelopment projects.

The URA is considering some innovative approaches in its project tender terms, aiming to enhance flexibility and
appeal to prospective developers. This includes enhancing the criteria for shortlisting qualified developers and
changing the payment terms for larger-scale projects like Development Areas 4 and 5 of the Kwun Tong Town
Centre Project. We are exploring different options, including enabling developers to pay by instalments with a
flexible payment schedule or through profit sharing. By easing the financial burden for potential developers, the
URA seeks to attract a broader spectrum of developers to participate in our projects.

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