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#1 ·
Introduction



Tackling the problem of urban decay

1. At present, there are about 9 300 private buildings in the Metro Area (i.e. Hong Kong Island, Kowloon, Tsuen Wan and Kwai Tsing) which are 30 years' old and above. In ten years' time, the number of buildings over 30 years' old will increase by 50%. The problem of ageing buildings is most serious in older urban areas.

2. To address the problem of urban decay and to improve the living conditions of residents in dilapidated urban areas, the Urban Renewal Authority Ordinance (Chapter 563) was enacted in July 2000. The Ordinance provides a new institutional framework for carrying out urban renewal. The Urban Renewal Authority (URA) was established on 1 May 2001.

Quality of life in our urban area

3. A "people-centred" approach should be used to carry out urban renewal. The purpose of urban renewal is to improve the quality of life of residents in the urban area. The Government has to balance the interests and needs of all sectors of the community without sacrificing the lawful rights of any particular group. The aim is to reduce the number of inadequately housed people.

4. The key principles underlying the Government's approach to urban renewal are -
(a) owners whose properties are acquired or resumed for the implementation of redevelopment projects should be offered fair and reasonable compensation;
(b) tenants affected by redevelopment projects should be provided with proper rehousing;
(c) the community at large should benefit from urban renewal; and
(d) residents affected by redevelopment projects should be given an opportunity to express their views on the projects.

5. The main objectives of urban renewal are -
(a) restructuring and replanning designated target areas;
(b) designing more effective and environmentally-friendly local transport and road networks;
(c) rationalizing land uses;
(d) redeveloping dilapidated buildings into new buildings of modern standard and environmentally-friendly design;
(e) promoting sustainable development in the urban area;
(f) promoting the rehabilitation of buildings in need of repair;
(g) preserving buildings, sites and structures of historical, cultural or architectural interest;
(h) preserving as far as practicable local characteristics;
(i) preserving the social networks of the local community;
(j) providing purpose-built housing for groups with special needs, such as the elderly and the disabled;
(k) providing more open space and community/welfare facilities; and
(l) enhancing the townscape with attractive landscape and urban design.

6. The Government aims to achieve the following targets through a 20-year urban renewal programme -
(a) redevelopment of some 2 000 ageing or dilapidated buildings;
(b) improvement of the environmental quality of 67 hectares of old and run-down urban areas;
(c) rehousing of some 27 000 tenant households;
(d) provision of around 60 000 m2 of open space;
(e) provision of about 90 000 m2 of floor space for use as community/welfare facilities; and
(f) provision of seven new schools.

7. Urban renewal is not a "slash and burn" process. A comprehensive and holistic approach should be adopted to rejuvenate older urban areas by way of redevelopment, rehabilitation and heritage preservation.
 
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#1,638 ·
Sino Land set to put another 1,200 new homes on market
The Standard
Tuesday, January 31, 2012

Sino Land (0083) is planning to market more than 1,200 homes at three new projects this year.

The homes - sized from 200 to 2,000 square feet - will range from studio flats to some large specialty units.

Baker Residences in Hung Hom is likely to be put out as completed flats within the first quarter. The 22,357-sq- ft residential gross floor area will house 68 studio flats, ranging from 200-300 sq ft. Another two projects in West Kowloon and Tai Po will be launched later in the year.

The West Kowloon project at Beech Street and Ivy Street is a redevelopment project with the Urban Renewal Authority. With 187,939 sq ft of residential gross floor area, it is expected to provide 460 units sized between 300-2,000 sq ft.

Phase 2 and 3 of Providence Bay in Tai Po will consist of 740 units. The project will have a mix of one- to four- bedrooms flats, ranging from 800-3,000 sq ft. Detached houses in the project may be as large as 3,600 sq ft.

"As mortgage rates will stay low for some time, we are quite positive on the property market this year as it is also supported by huge demand of end- users," said Victor Tin Siu-yuen, general manager of sales at Sino Land.

As for projects currently on the market, the firm said it had generated around HK$13.8 billion from selling flats at three developments.

It has sold around 640 out of 740 flats at The Coronation in West Kowloon, generating HK$7 billion. About 92 out of 120 flats at One Mayfair in Kowloon Tong have been offloaded for HK$3.3 billion, and another HK$3.5 billion has come from selling 170 out of 480 units at phase one of Providence Bay.

Meanwhile, Cushman and Wakefield said local flat prices face stiff pressure this year as global economic uncertainties are unlikely to fade away soon.

Mass market property prices may drop by 10-15 percent while luxury projects - those that cost more than HK$30 million - may fall by 5-10 percent, the real-estate consultant predicted.
 
#1,639 ·
Urgent call for budget funds to redevelop aging hospitals
The Standard
Monday, January 30, 2012

Cash should be put aside to redevelop two leading public hospitals that have come under fire for their poor conditions.

That's the view of Hospital Authority chairman Anthony Wu Ting-yuk who hopes plans for the rebuilding of Queen Mary and Kwong Wah hospitals will be announced in the budget on Wednesday.

"We are hoping for good news in the new budget as redevelopment projects at both hospitals will serve to raise the quality of medical service, and allow health-care workers to operate in a better environment," Wu said.

His comments came a week after the head of surgery at Queen Mary Hospital, Lo Chung-mau, criticized operating theaters in the old wings of the Pok Fu Lam hospital as being "worse than those of Third World countries."

Lo described how medical equipment will often fall apart when operations are being carried out.

There have been repeated complaints from doctors that facilities at both hospitals are decades behind standards of modern counterparts.

According to Wu, Queen Mary and Kwong Wah, being more than 70 and 100 years old respectively, are in urgent need of a revamp. He added that as the rate of admissions to public hospitals is high, medical facilities fall into disrepair faster than normal.

This calls for frequent repair and maintenance work.

Expenditure on these works at Queen Mary and Kwong Wah is about HK$36 million and HK$18 million, respectively.

Wu is also hoping that Financial Secretary John Tsang Chun-wah will announce financial help in his budget.

Chief Executive Donald Tsang Yam- kuen said in the Legislative Council last week that he has a particular interest towards redevelopment plans for both hospitals, and is sure that the financial secretary will consider his and other members' views when tabling the budget.

But the chief executive stressed that there are other factors than money involved when starting hospital improvement efforts.

For example, an old building such as Queen Mary Hospital needs to be preserved rather than renovated.

There also needs to be sufficient manpower for any redevelopment projects, he added.
 
#1,641 ·
New homes target set at 30,000 units
The Standard
Thursday, February 02, 2012

Land supply will be raised to build 30,000 private residential flats in the upcoming fiscal year, the government pledged yesterday.

John Tsang also announced that 47 residential sites being added to the application list will aim to provide 13,500 units.

"Our policies already in place have been effective," Tsang said, adding residential prices have fallen 5 percent since last June.

But the proposed supply is below what was outlined in the previous budget, which offered 52 sites providing up to 16,000 units.

Land sales in the 2012-2013 fiscal year could generate HK$60 billion versus HK$83.1 billion in the previous year.

New supply will mainly come from four projects along the West Rail, another three owned by MTR Corp (0066), and redevelopment projects of the Urban Renewal Authority.

Two other projects, above the West Rail Kam Sheung Road Station and Pat Heung Depot, will provide 8,700 units. Government sources said tenders would be called for the two sites, meant for small flats.

Real Estate Developers Association executive committee chairman Stewart Leung Chi-kin said the government should figure out the market appetite for land supply before releasing new sites.

"With high land price comes high flat prices, that's the very basic rule of thumb for developers. The government needs to consider whether developers would be able to keep buying."

He also urged the government to lower the reserve prices so that it will not have to withdraw sites when there are no takers.

But a government source rejected the contention that land prices are set at high levels.

Bricks & Mortar property analyst Eric Wong Chun-ya questioned the proposed 30,000 units goal.

"Right now, the market has a land inventory of 60,000 units - from empty sold sites to developed sites where flats are not yet sold. That is too little to provide 20,000 units per year."

An inventory of at least 100,000 units is needed to meet the goal, he estimated.

As for subsidized housing, the Housing Authority will consult district councils on six sites for new Home Ownership Scheme flats in Sha Tin, Tsuen Wan, Kwai Tsing and Yuen Long.

On the commercial front, the URA will be responsible for revitalizing old industrial areas for residential or commercial use.

Bernard Lim Wan-fung, president of the Hong Kong Institute of Urban Design, said the expansion of URA's portfolio bodes well for urban development as old industrial areas are prime sources of land.

URA will launch a pilot scheme to redevelop industrial buildings this year.
 
#1,642 ·
Cutting up sites to level playing field
The Standard
Friday, February 03, 2012

Large residential sites will be divided into smaller parcels in an attempt to attract small and medium- sized developers to compete with heavyweights.

To start off, four large sites - with a combined area of 1.829 million square feet in Tseung Kwan O, Tuen Mun and Tai Po - have been split into eight smaller sites, the government said yesterday.

"We believe the availability of smaller sites for sale would enhance market competition, particularly in the current situation," said Secretary for Development Carrie Lam Cheng Yuet-ngor.

"We will continue to apply this to other suitable sites without compromising the planning intent."

The 398,265-sq-ft site at Tseung Kwan O area 68A could provide one plot of 229,336 sq ft and another of 171,889 sq ft.

Seven of eight sites that will be split into smaller parcels are included on the new application list.

In the 2012-2013 fiscal year, 24 residential sites and one commercial plot have been added to the application list, taking the total to 47.

Stewart Leung Chi-kin, chairman of the Real Estate Developers Association executive committee, welcomed the idea, saying policy is being adapted to meet popular demand in the market.

Lai Yu-chung, project planning manager of Billion Development and Project Management, a small developer, said: "A smaller lump sum for a plot is of course attractive, but it would not be the sole consideration for us in buying land. Joint ventures are often seen among developers anyway."

Serena Lau Sze-wan, president of the Hong Kong Institute of Surveyors, said the idea would "not have too much effect on land prices."

For the first time, two residential sites at Kai Tak were included on the application list.

"Residential demand in the area is very likely to surge," said Amy Teo of Sun Hung Kai.
 
#1,644 ·
More to bottom lines than cash
The Standard
Thursday, February 02, 2012



The cinema at Times Square is being converted into retail space, triggering a bidding war among brand-name shops for leases.

The enthusiasm of potential tenants has apparently not been affected by concerns that tightened mainland money supply might impact the high-end consumer market.

Like all companies that understand the importance of establishing a firm foothold to capture a piece of the lucrative China market, European luxury brands aren't just looking at short-term factors.

I'm told one of the brand-name bidders is particularly keen, as it doesn't yet have a sizable flagship storefront here.

Meanwhile, retail properties on the other side of the harbor are doing just as well.

As no more sizable shops are available at Harbour City on Canton Road, the value and rental levels of premises in the vicinity are skyrocketing.

I heard that a watch shop there has just renewed its lease at three times the original rent. While that was said to be on the low side, a threefold increase is still staggering.

As if this isn't shocking enough, there is street talk that an owner who put his shop up for sale last year at HK$1 million per square foot has just rejected an offer.

The reasons: he's no longer urgently in need of cash, and has decided to boost the asking price to HK$1.3 million psf.

While a square foot price of seven digits is prohibitive, shop space on Canton Road will always remain in great demand, as brand-name outlets all want to establish a presence in the "Shoppers' Mecca."

With retailers shelling out astronomical rents to operate there, it's understandable that they will do everything they consider necessary to protect business.

The recent photo saga at one of the shops there that made international headlines is a case of such a mentality going to the extreme.

The painful incident should teach everyone a lesson - no matter how much you're paying to run your business, there are certain bottom lines you just can't cross.

Siu Sai-wo is chief editor of Sing Tao Daily
 
#1,645 ·
Market awaits 5,470 new flats
The Standard
Friday, January 27, 2012

As many as 5,470 new units from a dozen property projects will likely come on the market following next week's budget.

The 12 developments are in Tsuen Wan, Tuen Mun, Che Kung Temple, Ma On Shan, Fan Ling, Discovery Bay, Sai Wan, Hung Hom, Tai Hang Road, Ma Wan and Kowloon Shing.

The highest number of flats, 1,720, will come from the TW7 development near Tsuen Wan West MTR station, jointly developed by Cheung Kong (Holdings) (0001), Nan Fung Development, and MTR Corp (0066). These will be two-to-four bedroom units sized between 660 and 2,000 square feet.

Cheung Kong has hinted prices will be comparable to those at Festival City in Tai Wai - now costing between HK$7,900 and HK$8,300 psf.

Sun Hung Kai Properties (0016) and MTRC are also expected to release flats from the project atop Tuen Mun MTR station, providing 1,100 units. A market source expects the flats to be priced between HK$6,000 and HK$8,000 psf.

SHKP is also set to launch phase six of Park Island in Ma Wan soon, as presale consent has been received. It will provide 65 three-to-four bedroom units, sized between 1,200 and 2,200 sq ft.

New World Development (0017), Wheelock & Co (0020) and Sino Land (0083) will also launch new homes.

Meanwhile, Kerry Properties (0683) said it has pocketed HK$70.06 million by selling two flats at The Altitude in Happy Valley.

The buyers are Dragon Era Holdings and Soaring Dragon Holdings owned by brother and sister-in-law of Kerry Properties' chairman Kuok Khoon Chen.

Last month, the developer sold two flats and two parking spaces at The Altitude to its sister firm, Kerry Trading Co, for HK$94.83 million. Kerry shares rose 3.81 percent to HK$30 yesterday.
 
#1,646 ·
Stance softens on sites for small flats
The Standard
Thursday, February 09, 2012

The government may have softened its approach to boosting the supply of small and medium flats.

Secretary for Development Carrie Lam Cheng Yuet-ngor said in a radio interview that the government may release fewer residential sites with stipulations on the size and number of flats to be built.

"The Home Ownership Scheme as well as projects along the MTR stations and redevelopment projects by the Urban Renewal Authority will provide small and medium flats in the near term," Lam said.

"As these flats will help meet the demand, it may not be necessary to attach flat-size stipulations for the sites meant for private development projects."

But, she added, flat-number stipulations will still be attached to some plots, such as four of the five sites to be sold from April to June this year.

Her remarks were in contrast to those made by Financial Secretary John Tsang Chun-wah in his budget.

He said the government will "follow the practice of announcing land sale programs in advance on a quarterly basis, and stipulate flat-number or flat-size restrictions in land sales in the light of market conditions and the characteristics of individual sites."

Last month, the Bayside project near the Tsuen Wan MTR station was withdrawn from sale by the MTRC.

The project could have provided 2,384 units in nine buildings. But the conditions required that 52 percent of the flats must have a salable area of less than 538 square feet.

Developers have criticized conditions relating to the size or flat numbers.

Victor Cha Mou-zing, managing director of HKR International, described the conditions as "over-interference."

He added: "The government already has the tools to regulate home supply... and these restrictions hinder developers from using their experience to release the potential of the land parcels."
 
#1,647 ·
Central drawcard
The Standard

Thursday, February 09, 2012

Developers' confidence in the property market does not appear to have been affected by new land supply announced by the government last week. Many of the firms are keen to shore up their land bank judging by the interest in an Urban Renewal Authority development in an area near the Central district where historical features abound.

By Friday, 18 developers had expressed interest in a site on Peel Street and Graham Street in Sheung Wan. Seven developers also submitted tenders for a site at So Kwun Wat in Tuen Mun.

Both plots were released a day after the government revealed 47 sites on the application list for fiscal year 2012-13.

Cheung Kong (Holdings) (0001), Kerry Properties (0638), Sun Hung Kai Properties (0016), Henderson Land (0012), Emperor International (0163), New World Development (0017), China Overseas Land and Development (0688) and Asia Standard International (0129) all expressed interest in the URA site.

Kerry Properties and Emperor International said they plan to develop the site by themselves.

The authority will invite tenders from developers once a short list has been drawn.

The site is one of three pieces of land forming a bigger redevelopment masterplan along Gage Street.

The 18,191-square-foot site - the middle one of the three - is the first to be put to market.

It has a gross floor area of 191,492 sq ft and could provide 177 flats and 32,000 sq ft of retail space for fresh food.

Unlike at previous authority projects, there are no conditions attached to the site.

Old buildings on the site have been demolished. The other two sites in the plan are likely to be completed by 2021.

The entire development - with a site area of more than 57,000 sq ft and estimated to provide 737,683 sq ft of gross floor area - will have a mix of residential, commercial, office, hotel and community space.

It will be able to provide 300 homes.

The project involves 37 existing old buildings, four of which are prewar structures.

Midland Surveyors director Alvin Lam Tsz-pun said the site offered new residential supply near the core business district in Central. "Plus, there are quite a lot of shops and restaurants nearby, which would add high value to the retail space."

Lam estimates the plot will fetch HK$1.72 billion, or HK$9,000 per buildable sq ft.

The market expects between HK$1.53 billion and HK$2.87 billion, or HK$8,010-HK$15,000 per buildable sq ft.

There are few residential units in the area. The closest new project on the market is CentrePoint at Staunton Street and Chung Wo Lane, which is two blocks from the URA project.

Some flats at CentrePoint have yet to be sold by the developer, Henderson Land. New units cost HK$19,758 per sq ft on average. Buyers have put some flats on the secondary market.

The owner of a 486-sq-ft flat on an upper floor intends to sell for HK$9.3 million, or HK$19,136 psf.

The same owner is also interested in leasing the apartment for HK$51 psf per month.

Century 21 chief operating officer Chan Tung-ngok believes the site will attract "conservative" tenders from developers. He predicts bids ranging from HK$1.53 billion to HK$1.91 billion, or HK$8,000 to HK$9,000 per buildable sq ft.

Chan Cheung-kit, a director at Lanbase Surveyors, said some small and medium-sized developers would be attracted because of the site area and absence of any conditions related to flats that may be built.
 
#1,648 ·
Rich flats look inviting to migrants
The Standard
Monday, February 13, 2012

About 100 seniors, mainly professionals and some migrants, have expressed a wish to retire at luxury homes provided by the Housing Society.

The new "Joyous Living" projects at Tanner Hill in North Point and Wetland Park Road in Tin Shui Wai provide a viable option for the more affluent of the territory's 1.5 million seniors despite criticism about their prices, chairman Yeung Ka-sing said.

Michael Cheng, now living in Santa Barbara, California, told The Standard he is interested in the scheme.

"My wife and I have been living in the United States for the past 40 years and are approaching retirement age," he said. "We would like to retire in Hong Kong, and we have recently received our Hong Kong residency cards."

Cheng said he is keen to proceed with the application procedure.

"Please advise on how we may be able to resolve our housing needs without having to pay tens of millions in the open market."

Yeung said the society has yet to decide on the eligibility criteria for such homes, which do not receive subsidy from public funds.

But there will be no restriction on Hong Kong migrants returning home from overseas.

"Those who decide to return to spend a happier retirement here may, of course, prefer to hire suitable private accommodation and get a domestic helper to look after them," Yeung said.

"But I can assure you that domestic helpers alone will not be able to provide what we can, such as a well set up medical center with professional nursing care workers, nutritionists and more."

He said rents are not that expensive - averaging HK$10,000 a month for a period of 20-25 years.

Joyous Living projects will offer 1,538 homes with demonstration units and price lists open in 2014.

The society will also utilize the refund mechanism of the Senior Citizen Residences Scheme so that those who want to move out halfway through their contract will receive a lump sum refund of between 10-70 percent, Yeung said.
 
#1,649 ·
Hospitals in makeover line
The Standard
Thursday, February 02, 2012

Kwong Wah Hospital is to have a new day-care center and non-radioactive cancer treatment facilities under an HK$8 billion redevelopment project to be completed over the next eight years, a top executive said.

Tung Wah Group chairman Charles Chang Juo-hwa also said the redevelopment will strengthen the hospital's Chinese and Western medicine shared- care services, including the Chinese medicine in-patient service.

This came as John Tsang announced funding of HK$2.2 billion for clinic and hospital projects in the next fiscal year.

The two-phase Kwong Wah project will involve reconstruction of six of its seven buildings and a new 20-story block to house the new services. Only the Tsui Tsin Tong Outpatient Building, built in the late 1990s, will remain untouched.

Hospital chief executive Nelson Wat Ming-sun said adequate measures will be taken to avoid inconvenience to patients during the redevelopment.

"We will endeavor to communicate well with the district council, community and the other hospitals in the Kowloon West Cluster to rearrange and reallocate the patients we serve," he said.

Accident and emergency services will not be affected, Wat added.

The Kowloon West Cluster serves 1.9 million people and also includes the Princess Margaret and Yan Chai hospitals.

Meanwhile, Queen Mary Hospital will offer beefed-up emergency and cardiac services at the end of a HK$7 billion expansion plan to be completed in 2025.

Construction will take place in four phases, the first of which will involve demolishing the auxiliary medical warehouse and widening roads.

Hospital Authority chairman Anthony Wu Ting-yuk welcomed the budget and the funding for reconstructing the two hospitals, but estimated the makeover to take 10 years.

"The two hospitals have their own construction obstacles," Wu said.

"Queen Mary is located in a hilly area and many of its buildings are under statutory protection, while Kwong Wah has to ensure its services are not affected, considering its large flow of patients." The HK$2.2 billion pledged to the health sector by Tsang includes the expansion of the United Christian Hospital and the redevelopment of the Yan Chai, Kwong Wah and Queen Mary hospitals.
 
#1,650 ·
Developers rushing fresh supply to primary market
The Standard
Wednesday, February 15, 2012

At least 56 new homes will be available for sale on Friday at the earliest.

Wheelock & Co (0020) released 51 of 103 flats at Lexington Hill in Sai Wan yesterday. The first batch of 30, sized between 785 and 1,004 square feet, will be priced at about HK$11,039 per square foot.

This is closer to the lower end of the range of HK$11,000-HK$15,000 that the developer hinted at earlier.

The second and third batches - a total of 21 flats - will cost HK$11,688 psf and HK$14,697 psf, respectively. Flat sizes of these two batches also range from 785 to 1,004 sq ft.

Wheelock is targeting HK$1.4 billion to HK$1.5 billion from the sale of all 103 homes.

Neighboring homes are priced at between HK$6,500 and HK$8,600 psf.

Henderson Land (0012) also priced five of its detached houses at La Verte in Fan Ling at an average HK$8,888 per sq ft. That is 11 percent lower than HK$10,000 psf the developer hinted at earlier. The project provides 16 detached houses. Similar houses in the area sell for between HK$4,000 and HK$14,000 psf.

As for the secondary market, buyers are becoming more aggressive.

More than 60 potential buyers lined up to view a flat at Telford Gardens in Kowloon Bay yesterday. The 418-sq-ft flat was sold for HK$2.7 million, or HK$6,459 psf, within an hour of being viewed.

As sentiment improved in the market, shares of sector heavyweights surged.

Cheung Kong (Holdings) (0001) gained 3.31 percent to HK$109.10, while Sun Hung Kai Properties (0016) rose 3.55 percent to HK$113.8. Henderson Land was also up 6 percent to HK$45.4. In other action, the Urban Renewal Authority said it plans to make acquisition offers to the 108 properties that will be affected by the redevelopment projects at Pak Tai Street and San Shan Road in To Kwa Wan.

The owners or occupiers will be offered HK$8,939 psf for saleable area. They will have 60 days to decide whether to accept the offer.
 
#1,651 ·
LCQ15: Treatment of sewage and rainwater
Wednesday, February 15, 2012
Government Press Release

Following is a question by the Hon Frederick Fung and a written reply by the Secretary for Development, Mrs Carrie Lam, in the Legislative Council today (February 15):

Question:

At present, the Drainage Services Department is responsible for the sewage and stormwater treatment and drainage systems in Hong Kong. The stormwater drainage system is mainly used for flood prevention and for coping with floods caused by heavy rainstorms, and stormwater is basically untreated before it is discharged into the sea directly. In this connection, will the Government inform this Council:

(a) of the number and contents of the complaints received by the authorities in the past three years about the hygiene problems brought by the outfalls and gullies of the stormwater collection system, as well as the solutions provided by the authorities; whether the authorities have conducted any study or used any new technology to improve the relevant hygienic conditions;

(b) given that it is possible that the sewage produced in our daily lives may be discharged into the stormwater collection system directly (e.g. the sewage produced from street cleaning, especially during the dry seasons when there is not enough rainwater to dilute the sewage before it is discharged into the sea directly), thereby polluting the coastal water in the vicinity of outfalls and giving out foul odour, whether the authorities have, in the past, conducted water quality tests on the sewage discharged through the stormwater collection system or the coastal water in the vicinity of the outfalls at different times in each year; if they have, of the test results in the past three years (including the impacts of seasonal factors, etc.); if not, the reasons for that;

(c) whether the authorities have examined or considered applying the technologies (including connecting all or some of the stormwater drains to the sewage drainage system and putting in place a switching system that allows the connection of stormwater drains to the sewage drainage system) used in the stormwater collection systems in other places, so as to reduce water pollution caused by the direct discharge of stormwater; if not, of the reasons for that; and

(d) whether the authorities have, in the past, conducted any study on stormwater collection systems with a view to utilising stormwater resources in a more effective way to reduce the consumption of potable water, e.g. building large-scale or regional stormwater harvesting systems and secondary water supply systems (i.e. systems other than the existing plumbing systems for fresh water supply at the taps) for the purpose of utilising stormwater for various non-potable uses (e.g. toilet flushing, landscape irrigation and cooling air-conditioning systems, etc.); if they have, of the findings?

Reply:

President,

In Hong Kong, the sewerage system and the stormwater collection system operate independently to enable the separate treatment of sewage and rainwater. In general, stormwater is directly discharged into the sea. To prevent polluted water from entering the stormwater collection system due to various reasons thus polluting the environment, we have implemented a handful of measures to reduce the discharge of polluted water into the stormwater collection system, such as tackling the problem at source by rectifying misconnections to stormwater drains; installing dry weather flow interceptors at suitable locations; and regulating improper discharge of polluted water at roadside. Moreover, we would carry out regular cleansing work to remove sludge at the stormwater collection system so as to reduce nuisance to the public arising from the odour generated by the accumulated sludge.

My reply to the four parts of the question is as follows:

(a) From 2009 to 2011, the Highways Department and the Drainage Services Department received a total of 563 complaints about foul odour from drains and gullies of the stormwater collection system. However, we have no further breakdown of the complaints into different problems, such as hygiene problem. On receipt of a complaint about foul odour, the departments concerned would immediately arrange contractor to carry out cleansing work. Generally, the main causes of foul odour are misconnection of sewers to the stormwater collection system and improper discharge of polluted water into stormwater drains. Apart from rectifying the misconnections to resolve the problem at source, enforcement departments concerned would also conduct regular inspections to deal with any illegal discharge of polluted water into roadside drains on the spot. Appropriate enforcement actions would also be considered when breaches of relevant legislations (such as the Water Pollution Control Ordinance) are found. On the technical front, the Highways Department would install gully traps at roadside gullies at black spots of foul odour to reduce odour releasing from the drains. In addition, a local university is conducting a study on reducing foul odour arising from sludge in box culverts. The study is expected to complete in 2013.

(b) The Environmental Protection Department (EPD) has set up a total of 94 monitoring stations in Hong Kong waters, inner bays, typhoon shelters and anchorages to monitor marine water quality on a regular basis. The selection of sites for these stations and the monitoring methodologies are set in accordance with internationally recognised scientific practices of the relevant disciplines, including oceanography and statistics. As the collected water quality data are mainly used for studying the long-term trend of variations in marine water quality, the monitoring stations are generally located offshore instead of near-shore areas to avoid recording widely divergent data arising from abrupt pollutant sources near the shore. Otherwise, the data may lead to over- or under-estimation of the water quality of the receiving waters concerned. As such, the Marine Water Quality Monitoring Programme of the EPD would not conduct water quality tests at near-shore areas, particularly at stormwater outfalls or their nearby waters where there may be pollutant discharges.

Apart from EPD's regular water quality monitoring as mentioned above, the Civil Engineering and Development Department (CEDD) has also conducted baseline water quality monitoring at the waterways adjacent to Kai Tak Development (including To Kwa Wan Typhoon Shelter) since December 2009, in connection with the planning and design of the Kai Tak Development. The CEDD collects water samples every three months to analyse a number of physical, chemical and microbiological parameters, including dissolved oxygen and coliform count. The monitoring results are available for public viewing on the website of Kai Tak Development (www.ktd.gov.hk).

Regarding the monitoring of inflow of polluted water into the stormwater collection system, we consider that regular inspections and immediate tackling of pollution at source are more effective in preventing the polluted water from entering stormwater drains.

(c) As far as practicable, we would incorporate sewage collection installations, such as dry weather flow interceptors, into stormwater collection systems. These installations can intercept and divert polluted water flow to sewerage system for treatment during dry seasons.

Hong Kong is located in the subtropical region with high annual rainfall. Connecting all or some of the stormwater drains directly or via a switching system to the sewerage system would lead to huge volume of stormwater entering the sewerage system. Coping with the large amount of additional stormwater flow would require many-fold enlargement in the size of the existing sewer pipes and substantial expansion in the capacity of the sewage treatment works. As a matter of fact, most of our urban underground spaces are already congested with various kinds of pipes and ducts. It is not practical to lay larger sewers in these areas. Besides, it is not cost-effective to enlarge the sewers and expand the capacity of sewage treatment works to deal with the additional rainwater inflow.

(d) We have been undertaking studies on the more effective use of rainwater resources and reduction of potable water for non-potable uses. At present, we have selected some parks and public housing development projects for trial schemes on harvesting rainwater via rainwater harvesting systems for toilet flushing and irrigation purposes. Findings from these schemes will serve as references for setting the future standards of rainwater harvesting system. Besides, the Water Supplies Department has commissioned a consultancy study on the development of design guidelines and water quality standards for rainwater harvesting system. The study is scheduled to be completed in 2012.
 
#1,652 ·
Closed area starts to shrink in size
The Standard
Wednesday, February 15, 2012

The restricted zone separating Hong Kong from the mainland will be reduced from today - allowing the public to enter certain boundary locations without a closed area permit.

The move, which opens 740 hectares of land in Sha Tau Kok and Lok Ma Chau to the public, is the first of three stages that cuts the Frontier Closed Area, or FCA, from 2,800 hectares to 400 hectares.

Deputy Secretary for Security Carol Yip Man-kuen said Shek Chung Au checkpoint in Sha Tau Kok will close for good and a new Gate One checkpoint in the area starts operating today.

Construction of new patrol roads from Mai Po to the Lok Ma Chau control point section, and Lin Ma Hang to Sha Tau Kok section, is completed.

Work on the second section involves erecting a secondary boundary fence from the entrance of Sha Tau Kok town, where the Gate One checkpoint is located, to the Sha Tau Kok control point, a distance of about 500 meters.

"The reduced FCA now comprises a narrow strip of land covering the realigned boundary patrol road and areas to its north, together with crossing points along the boundary, that is the boundary control points and Sha Tau Kok town," Yip said.

"Upon reduction, about 3,300 local residents in eight villages and workers in the areas concerned will have more access. Outsiders do not have to apply for a closed area permit to enter or leave the areas to be released from the FCA."

Chung Ying Street and Sha Tau Kok town are still under FCA restrictions to combat illegal immigration and other cross-boundary criminal activities.

Kenneth Chan Kwok-wah, divisional commander (Sha Tau Kok) of the Customs and Excise Department, said: "The operation of the Gate One checkpoint in Sha Tau Kok will remain the same as Shek Chung Au checkpoint.

"The facilities for the new checkpoint will also include a minor building structure and a covered vehicle inspection area spanning road for the inspection of vehicles."
 
#1,653 ·
First stage of reduction of Frontier Closed Area implemented
Wednesday, February 15, 2012
Government Press Release



The Under Secretary for Security, Mr Lai Tung-kwok, officiated at a ceremony at the Shek Chung Au Check Point at midnight yesterday (February 14), signifying that a total of more than 740 hectares of land was excised from the Frontier Closed Area (FCA) for public use in the first stage of the reduction of the FCA.

The Shek Chung Au Check Point operated by the Police and the Customs and Excise Department was closed officially right after the ceremony while the Sha Tau Kok Check Point started to operate simultaneously.

The Security Bureau announced in January 2008 that the coverage of the FCA would be substantially reduced from about 2,800 hectares to about 400 hectares. In order to implement the reduced coverage of the FCA while maintaining the integrity of the boundary, the Government needs to construct a secondary boundary fence along the boundary patrol road.

The construction works have been divided into four sections, namely the "Mai Po to Lok Ma Chau Control Point Section", the "Lok Ma Chau Control Point to Ng Tung River Section", the "Ng Tung River to Lin Ma Hang Section" and the "Lin Ma Hang to Sha Tau Kok Section". The Government implements the reduction of the FCA by amending the Frontier Closed Area Order in stages to tie in with the completion of the construction works for the four sections. The "Mai Po to Lok Ma Chau Control Point Section" and the "Lin Ma Hang to Sha Tau Kok Section" are covered in this first stage reduction.

The construction works for the "Lok Ma Chau Control Point to Ng Tung River Section" are expected to be completed by the fourth quarter of 2012. The Government aims to further reduce the FCA by introducing another amendment to the Frontier Closed Area Order in early 2013. As for the "Ng Tung River to Lin Ma Hang Section", the construction works will start in the first quarter of 2012 and are expected to be completed by the first quarter of 2015.
 
#1,654 ·
Callers raise roof over flats for rich
The Standard
Thursday, February 09, 2012

Housing Society chairman Yeung Ka-sing has defended a luxury homes plan for the elderly against criticism it is a waste of public funds.

The "Joyous Living" scheme, involving a total of 1,538 homes, is based around two projects at Tanner Hill in North Point and Wetland Park Road in Tin Shui Wai.

Units will be between 500 and 1,000 square foot in size.

Affluent senior citizens will have to pay a lump sum upfront to live at the developments.

Callers to an RTHK phone-in show slammed the scheme.

"If I pay more than HK$100,000 each year to rent a residential unit in the new projects, I don't see any difference from paying for a nursing home, which even provides food and domestic services for 24 hours, seven days a week," one caller said.

Another said: "The Housing Society receives subsidies from public funds. If I'm so rich, why would I prefer to rent an apartment managed by the society?"

Yeung told RTHK that the scheme would not receive a subsidy from public funds, and would be self- financed.

He added that rents are essentially set according to construction and operational costs, instead of rises or falls in the property market.

Yeung said yesterday he does not expect to see profits from the scheme, and will be happy if costs are covered.

"The Joyous Living projects are tailor-made to meet the special needs of affluent senior citizens, instead of all of the seven million Hongkongers," he said.

"The society is simply offering one more housing solution to those with greater affordability.

"The public shouldn't be confused about the concept."

For empty residential units, the Housing Society would in future adjust the price range according to the inflation rate.
 
#1,658 ·
Root of all evil lies in bad planning
The Standard
Monday, February 20, 2012

Illegal construction has become a heated topic, from extension structures in the New Territories, to top Hong Kong officials building additions to their homes.

The recent controversy illustrates the notion of inequality and unfairness in modern society.

It is common knowledge that space in the SAR is limited and scarce, so land is more valuable than gold.

Therefore, Hongkongers - given their urge to maximize all commercial value - tend to cross the line and build more than the allowable area.

Every piece of land is associated with a preset potential for development, meaning the size of the site, amount of area that is allowed to be built on it, height limit, and so on, are all determined by the government's planning department.

There are certain cases in which these parameters may be changed - if the appropriate proposal and documentation have been approved, along with a fee.

The value of a site hinges heavily on the amount of area the owner can build on it, and that will determine the return estimation. If the land is sold at a well-traded price range with the potential development of the site known, this will bring about the most efficient and fair price.

But if an owner decides to violate regulations after purchasing the property by creating additional space, this will dramatically increase the allowable finished area on the site, leading to an unfair condition among most of the public.

Hong Kong is very different from the rest of the world. Unlike in the West, where open space is more abundant, the need to exploit every last square inch of developable area is minimal, since there is incentive for people to live in the suburbs with a convenient transportation network.

But here, where transportation may be extremely poor once you get into the rural districts, there is a strong urgency for planners to create more density within the urban areas.

The only logical remedy starts with planning. The urban planning here has always failed to keep up with the city's rapid growth, lacking flexibility or adaptability.

The problem with illegal construction stems not only from regulations, the root of all evil lies with the poor urban planning dating back more than 30 years.

It is high time for us to realize that what we are seeing now is only the tip of the iceberg - a ticking time bomb waiting to explode - with a housing shortage looming in the face of population growth among expatriates and Hong Kong-born mainlanders. Architect Nicholas Ho and art historian Stephanie Poon don't always see eye to eye.
 
#1,659 ·
Developers bank on low-density home schemes
The Standard
Thursday, February 23, 2012

Sun Hung Kai Properties (0016) plans to put to market two low-density projects next week.

The sixth phase of Park Island Oceancrest, also called AnaCapri, will offer luxury flats sized between 1,200 and 2,000 square feet.

A unit at the 65-unit project will cost HK$10,000 psf on average, putting AnaCapri on course to generating HK$1 billion in sales.

Also being released is another four-unit detached house project in Tuen Mun. The houses are sized between 3,700 and 4,500 sq ft each, and will cost an average of HK$20,000 psf, putting SHKP on course for another HK$400 million.

SHKP also plans to start selling, from late next month, flats atop the Tuen Mun MTR station - which are now awaiting presale consent.

Sun Hung Kai Real Estate Agency executive director Victor Lui Ting said property prices are likely to see moderate rises this year. "Surging household incomes and low mortgage rates are fueling demand and support prices this year," he said.

Paliburg Holdings (0617) director Donald Fan Tung also said there are favorable factors.

"The poor sentiment seen last year was due to the European sovereign debt crisis. But now I wouldn't worry even if the crisis cannot be settled, as the market is supported by the influx of buyers from the mainland and low interest rates."

Paliburg said it plans to buy more land this year, including the 32,830 sq ft Ap Lei Chau site, which may fetch between HK$1.15 billion and HK$2.7 billion, or HK$5,000 to HK$12,000 per buildable sq ft. About 200 to 300 units could be built on the site, the tender for which closes on March 16.

The developer also plans to launch two hotels in Sheung Wan, one hotel in Tin Hau, and a residential project in Yuen Long.

Meanwhile, two low-density residential sites are to be sold through public tender.

A 45,747-sq-ft site near Repulse Bay, with a gross floor area of 41,172 sq ft, is likely to fetch between HK$11.65 billion and HK$18.9 billion.

The other - a 97,091-sq-ft site in Siu Lam, Tuen Mun with a GFA of 38,836 sq ft - is expected to cost between HK$117 million and HK$194 million.
 
#1,660 ·
Proposed institutional changes to upgrade the construction industry
Friday, February 24, 2012
Government Press Release

The proposed amalgamation of the Construction Industry Council (CIC) and the Construction Workers Registration Authority (CWRA) will enhance the institutional arrangements related to the construction industry in Hong Kong. This will be another milestone in strengthening Hong Kong's construction industry further, after the amalgamation of the CIC and the then Construction Industry Training Authority in 2008.

The Construction Industry Legislation (Miscellaneous Amendments) Bill 2012, which proposed the amalgamation and other measures to further streamline the CIC's institutional operation to ensure the healthy and sustainable development of the construction industry as a whole, was gazetted today (February 24).

A spokesman for the Development Bureau said that in its report "Construct for Excellence", published in January 2001, the Construction Industry Review Committee (CIRC) recommended the establishment of an industry co-ordinating body to provide a focus for the construction industry's reform efforts and to foster better co-ordination within the industry. The CIRC also supported in principle the implementation of a worker registration scheme through legislative means. When the CIC Bill was introduced into the Legislative Council (LegCo) in February 2004, it was the policy intent for the CIC to ultimately undertake both training and registration of construction workers.

The CWRA was established in September 2004 and commenced the registration of construction workers in December 2005. The CIC was established in February 2007 and amalgamated with the former Construction Industry Training Authority in January 2008 to take over the training functions and powers discharged by the latter.

"To meet the legislative intent for the establishment of the CIC, there is a present and pressing need to amalgamate the CIC and the CWRA to achieve synergy and support the Government's massive infrastructure programme at the earliest opportunity.

"After due consultation with the LegCo Panel on Development, trade associations and labour unions of the construction industry on the proposed amalgamation and amendments to the Construction Industry Council Ordinance (CICO) and the Construction Workers Registration Ordinance (CWRO), we have drawn up the proposals which are now contained in the Bill," the spokesman said.

The Bill also includes an amendment to the CICO to provide flexibility for the Council to finance educational, publicity, research or other programmes relating to occupational safety and health, environmental protection or sustainable development in the construction industry.

The Bill seeks to introduce amendments to the CWRO to extend the period for the renewal of worker registration from three months to six months and to allow extension of the period for provisional registration under circumstances beyond the control of the workers concerned to assist workers in the registration process.

A new provision is included in the CWRO to pave the way for the workers registration card issued under the CWRO to store and display information of other construction-related cards/certificates in order to reduce the number of cards that a worker needs to carry while at work.

The Secretary for Development will introduce the Bill into the LegCo on February 29. The LegCo Brief on the Bill is available at the Development Bureau's website:
www.devb.gov.hk/en/legco_matters/legislative_council_papers/index.html.
 
#1,661 ·
New home prices raised after sentiment improves
The Standard
Monday, February 27, 2012

Some developers are raising the prices of new homes as buyer sentiment continues to improve.

China Overseas Land and Investment (0688) sold 41 flats at The Green in Fan Ling over the weekend.

The developer has released another batch of 14 flats sized between 2,720 and 2,912 square feet, priced at an average of HK$11,520 psf. These will be available for sale on Wednesday.

The average per square foot price of this batch of flats is 3.6 percent less than those in the previous batch at HK$11,945 psf. But this is still 37 percent higher than prices in the first batch of 75 flats at HK$8,411 psf. In all, 75 units will be on the market in the next few days.

According to agents, 20 flats had been reserved at the weekend. The Green offers 254 detached houses ranging in size from 2,032 to 4,025 sq ft.

Also, Cheung Kong (Holdings) (0001) sold 40 flats at Festival City stage three in Tai Wai. The developer said earlier that it will withdraw the remaining flats from the market for three weeks, as it prepares for the launch of the next batch.

Meanwhile, sales in the secondary home market - both mass-market and luxury segments - continued apace with transactions for the former reaching a one-year high.

Centaline said it recorded 76 sales in the 10 major housing estates at the weekend, up from 70 a week ago. In City One in Sha Tin, 12 flats changed hands, or twice the number sold a week ago.

Louis Chan Wing-kit, Centaline's chief executive for residential sales, said confidence has been boosted by market sentiment.

In addition, two detached houses at Residence Bel-Air in Cyberport were sold for more than HK$150 million each. A 6,000-sq-ft house was sold for HK$158 million, or HK$26,333 psf, while another 5,232-sq-ft house fetched HK$170 million, or HK$32,492 psf.

Some homeowners, too, are asking higher prices.

In Discovery Park in Tsuen Wan, a 610-sq-ft two-bedroom flat was sold after the homeowner raised the price by HK$30,000, according to agents. The homeowner sold the flat for HK$3.58 million, representing HK$5,869 psf.
 
#1,662 ·
To Kwa Wan flat owners get the option to swap
The Standard
Tuesday, February 28, 2012

The Urban Renewal Authority has introduced a flat-swap program for a redevelopment project in To Kwa Wan under the new Urban Renewal Strategy.

Flat owners of the Pak Tai Street/Sun San Road redevelopment project who live in the homes now have an option to swap for a flat in the redeveloped project at the original site, or a new project in the Kai Tak area.

The choices are in addition to the usual cash compensation announced earlier this month of HK$8,939 per square foot of saleable area.

Managing director Quinn Law Yee- kwan said this will give affected families more choices.

The Kai Tak project, to be completed in 2016-2017, will consist of 323 sq ft to 692 sq ft flats. It will be a "no- extragavance" design such as a hotel- style lobby, executive director Iris Tam Siu-ying said, with 30 percent of the site area to be green-covered.

The Urban Renewal Authority has reserved 99 units for the 40-odd flat owners to choose from - 49 units in the original project and 50 units in the Kai Tak project.

The owners have been given 60 days to consider the offer starting from yesterday.

The 50 Kai Tak homes will be priced between HK$9,045 and HK$10,358 psf on a saleable area basis.

But Law said because the Kai Tak flats will be in general slightly smaller than the old flats, two thirds of the 99 flats cost less than the compensation, meaning most do not need to pay extra for a new home.

Meanwhile, a consortium consisting of Chevalier International Holdings and Golden Code Development has outbid nine others for the authority's redevelopment at Chi Kiang Street/Ha Heung Road in To Kwa Wan.

The project site is about 930 square meters and upon completion is expected to deliver a total gross floor area of about 8,380 square meters for an estimated total of 116 residential units, together with the provision of commercial space of about 1,400 square meters.

Half of the flats are to be about 500 sq ft, the authority said. The market has estimated that the land is worth between HK$450 million and HK$550 million, but the authority would not disclose the financial terms of the contract.

Separately, Secretary for Development Carrie Lam Cheng Yuet-ngor said the authority will carry out a pilot scheme to redevelop industrial buildings.

She said the government will make a contribution to the authority if there are additional resources and staffing involved in the new scheme.
 
#1,663 ·
At a low point
The Standard
Thursday, February 23, 2012

Residential transactions may have rebounded in recent weeks, but the morale of property agents is at a low ebb. Displeasure has bubbled over on occasion and last week agents even agitated against their employer.

Agents are also facing new challenges in the form of proposed legislation that aims to regulate primary market sales. The adoption of "saleable area" in secondhand sales and leases is also being discussed.

In the meantime, two bribery convictions came to light, though the offenses were committed a couple of years ago. The offenders were charged by the Independent Commission Against Corruption.

In two separate cases, one agent was found to have pocketed an extra HK$10,000 from a client without his agency's permission, while the other solicited a HK$2,000 commission from a subordinate. Both were found guilty and got jail terms.

"Everybody became desperate for some extra cash, which makes sense in a sluggish market," said an agent who declined to be named. "During good times when everyone is earning big, HK$2,000 is too little for us to care about. Even if we were asked for cash, we would just pay to get it over with."

The agent added that it is the juniors who will normally be tempted because they do not get the chance to handle many transactions.

"But with the current poor market sentiment, it's likely that some third parties were jealous of the person getting the illegal extra cash, and so reported the incidents to the ICAC."

Occasionally, property developers also offer higher commissions to agents as an incentive to sell new homes. But many hands stretch out to grab those incentives.

A senior agent at a small property agency said such commissions attract those selling secondary homes into the fray.

"How many of us can actually get the higher commission? Not to mention the split with the agency," the agent said. "Even when transactions are improving as they are now, the larger firms grab them all. Barely anything is left for us."

Compared with the usual commissions of 2 to 2.5 percent, developers of some new projects have offered commissions of up to 5 percent.

For a secondary home deal, agencies get a commission equivalent to 2 percent of the property's price. This means 1 percent from the buyer and 1percent from the seller.

When more than one agency is involved in a deal, the commission is usually split.

As the market goes into slow growth mode, few people are entering the industry.

In the February round of qualifying examinations, the number of registered candidates fell 45 percent from a year ago, according to the Estate Agents Authority. At the peak, 4,887 registered for the exam in August last year.

Those in the business are not entirely efficient either. The authority has reported receiving 590 complaints against agents last year, down 5 percent from 2010. The industry body revoked nine licenses last year.

Meanwhile, about 100 property agents of Midland Realty - angered by suggestions that extra commissions were being cut - took their grievance to the boss.

Last Thursday they gathered on the 25th floor of World-Wide House in Central, asking to meet with chairman Freddie Wong Kin-yip.

Later that day, the firm issued a press release saying that it settled a dispute, while also denying that it was about extra commissions.

The protest lasted three to four hours. But it was a rare agitation in the history of Hong Kong real estate agents.
 
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