Page 13 - Urban Renewal Authority 2023-24 Annual Report

Chairman’s Statement

Geared up with Thoughtful and Strategic Chairman’s Statement
Preparation to Embrace Challenges for Managing Director’s Statement

a Sustainable Future

Managing Director’s Statement
The year 2023/24 presented many challenges for the URA. Among these were the
volatile socio-economic conditions, unstable property market and high interest rates
that prompted developers to exercise greater caution in their bidding and pricing
strategies. These factors also affected the revenue we received from the upfront
payment of tendered projects such as the Shing Tak Street Development Project in Operating Review
To Kwa Wan, the only project tendered during the year. It was awarded at a price
significantly lower than the cost of acquiring that property interests, which resulted
in a “buy high, sell low” situation that put URA’s financials under pressure.
Operating Review
When I took on the role of Managing Director in 2016, the economy in Hong Kong
was still thriving. At that time, I forewarned that any changes in the global economy,
quantitative easing policies and interest rates could have a negative impact on the
local property market. This would lead to the “buy high, sell low” situation
mentioned above and, in turn, increase the URA’s financial risks. Corporate Sustainability

In response, our team began exploring in advance, appropriate strategies to deal
with potential market fluctuations that could hinder the progress of our urban
renewal initiatives. The comprehensive strategies formulated by the team
Corporate Sustainability
encompass overall planning, commencement schedules, implementation models
and financial planning for our urban renewal projects. The team also adopted an
innovative and pioneering mindset that has enabled us to tackle the challenges
arising from the market changes of the past year. This forward-thinking approach will
shape our urban renewal efforts and promote their long-term sustainability. Management Discussion and Analysis

Management Discussion and Analysis

Projects at a Glance

URA ANNUAL REPORT 2023-24 11 Projects at a Glance
11
Corporate Governance
Corporate Governance