HONG KONG | Projects & Construction

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Protesters fear higher flats will worsen air
The Standard
Monday, December 03, 2012

A group of Tseung Kwan O residents is opposing a proposal to increase the plot ratios for several residential sites on the district's shoreline over fears it will worsen air pollution.

About 20 people yesterday joined a protest in Tseung Kwan O to oppose the government's plan.

Sai Kung District Council member and protest leader Christine Fong Kwok-shan said she is worried that increasing the plot ratio will result in a "curtain effect," blocking the flow of fresh air due to height and density of buildings and worsen air quality in the area, which has landfills nearby.

"Residents do not oppose government [moves] to increase housing supply but believe the government should construct buildings in appropriate areas such as Tiu Keng Leng and Sai Kung," she said.

The plot ratio will be raised from three times to 3.3 times and from two times to four times in southern Tseung Kwan O, increasing the number of flats from 2,800 to 3,320.

Michael Choi Ngai-min, a member of the government's Long Term Housing Strategy Steering Committee, said he is not worried that raising the plot ratio will draw further opposition.

"A few years ago, we looked for higher quality of living such as lower building density, but now more people just want a home to live in," he said.

"The government will have to strive for a balance of housing and environmental problems.

"But I believe the government does not want to see any curtain effect caused by the buildings."

Choi said raising the plot ratio is the best solution to housing problems.

"Ventilation involves various aspects, not only the height of the buildings, such as building density and orientation," he said. "Further studies are needed to avoid any curtain effect."

An associate professor in social science at the Hong Kong University of Science and Technology, Sing Ming, said it is possible that raising the plot ratio will trigger further opposition if the government does not have a detailed building proposal.

"One of the reasons the government proposed to raise plot ratio is due to insufficient land, yet some available land is used to develop houses of indigenous villagers," he said.

[hkskyline]

Mei Ho House renovation at Shek Kip Mei (see bottom) :

image hosted on flickr

Kowloon from Sham Shui Po Reservoir by Thomas Birke, on Flickr

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Central Kowloon Route - Phase 2 Public Engagement exercise commences
Wednesday, December 5, 2012
Government Press Release



The Highways Department commenced the three-month Phase 2 Public Engagement exercise for the Central Kowloon Route (CKR) today (December 5) to collect public views on the detailed design and construction arrangements of the CKR.

The CKR is a 4.7-kilometre dual three-lane trunk road with 3.9km of tunnel and will form a key component of the strategic road network in Hong Kong after commissioning.

The Project Manager of the Major Works Project Management Office of the Highways Department, Mrs Joanna Kwok, indicated at the media briefing today that the CKR would connect the Yau Ma Tei Interchange in West Kowloon with Kowloon Bay and Kai Tak Development in East Kowloon and hence divert traffic away from the major east-west corridors in Kowloon. This would therefore effectively relieve the existing congestion problems and cater for traffic demand generated by future developments. Furthermore, the CKR consists mainly of tunnels and will thus help reduce air pollution resulting from traffic congestion.

"With the commissioning of the CKR, the journey time between Kowloon Bay and Yau Ma Tei through CKR at peak hours will be only around five minutes, thus saving about 25 to 30 minutes in comparison with the travel time without the CKR," Mrs Kwok said.

The department conducted the Phase 1 Public Engagement exercise for the CKR between 2007 and 2009. According to feedback collected at that time, the public generally agreed with the need for construction of the CKR and supported the recommended alignment as well as the reprovisioning arrangements for the affected public facilities.

"The design of the CKR incorporated several features in response to the public concerns raised in the Phase 1 Public Engagement exercise. On environment, we will construct landscape decks and noise enclosures and barriers at appropriate locations to enhance the environmental benefits of the project and at the same time introduce more greening and improve the adjacent environment. On culture and heritage, the recommended alignment will preserve the historic buildings of the Yau Ma Tei Police Station and allow Temple Street night market activities to continue during the construction stage," Mrs Kwok added.

"We will adopt the approach of reproviding the affected public facilities in advance to minimise the impact on public services. The extent of the temporary reclamation for construction of the underwater tunnel in Kowloon Bay will be kept to the minimum.

"Furthermore, the tunnel will be constructed mainly deep underground in rock stratum and will not therefore affect the foundation, structure and use of the adjacent buildings. The recommended alignment will not involve any resumption and clearance of private properties or relocation of any households," she said.

The department is progressively issuing the latest project news and invitations to adjacent residents to participate in the focus group meetings to be held from December 12 to 20 to introduce the CKR project. Other public engagement activities including public forums and roving exhibitions will also be organised to help the public understand and engage in wider discussions on the project.

The department will complete the Environmental Impact Assessment (EIA) report in parallel with the public engagement and will apply to the Director of Environmental Protection for the approval of the EIA report and issue of the Environmental Permit in accordance with the provisions of the Environmental Impact Assessment Ordinance. The CKR project will also be gazetted in accordance with the Roads (Works, Use and Compensation) Ordinance in due course. It is anticipated that the works will start in around 2015 and will be completed in about five years.

The revamped CKR website (www.ckr-hyd.hk) was launched today to disseminate information on the project and latest news on the public engagement activities. Visits by the public are welcomed. For enquiries, please contact us via the department hotline (Tel: 2762 3601).

[hkskyline]

Government eyes Lamma Island site for new housing project
The government is targeting an uninhabited part of the island for a new development, but residents and environmentalists have doubts
Saturday, 08 December, 2012
South China Morning Post



The government is looking at an uninhabited part of Lamma Island in its search for more housing sites, tabling options that would yield up to 2,800 flats.

But residents and environmentalists caution against overdeveloping the island, long a haven for wildlife as well as urbanites escaping the city's bustle.

The land under consideration - according to the consultation document the Planning Department released yesterday - covers 60 hectares in Sok Kwu Wan, including a former quarry, in the middle of the island.

Of the two options put forward in the study, the "Seaside Living" concept would yield between 2,000 and 2,800 flats for a population of up to 7,000.

Private and subsidised housing - but not public rental homes - would be considered under the concept, with flat sizes ranging between 500 and 1,000 sq ft. A 12-storey limit would be set for the buildings, and an existing man-made lake would be partially filled to cater for a higher-density development.

The other option, the "Seaside Paradise" concept, which focuses more on tourism, would produce 1,000 flats and feature resort-style hotels and a marina.

Lamma resident Damon Wong Chun-pong said residents had expressed their reservations about having a densely built environment on the island during a meeting with study consultants this year.

"We are not against development. But we've had only village houses on Lamma and any new housing would better come in more or less the same style and height," Wong said.

"We do not want to see the area dominated by luxury homes strictly managed by one single developer like Discovery Bay. This would run against the village lifestyle and the natural scenic character of Lamma."

Conservancy Association campaign manager Peter Li Siu-man said the scale of the proposed development was too large, warning of the possible ecological effects.

"Remember that there are ecologically sensitive areas for green turtles in south Lamma. Any drastic change in the middle part of Lamma is likely to impact both the north and the south," Li said. A resort and character hotels of a smaller scale, rather than a housing estate, would be more suitable for the area, he added.

The Planning Department will hold three public forums next month to collect views. A development plan is expected to be finalised late next year.

[Minsk]

North Point Harbour Urban Planning Concept Winning Proposal / Chris Y. H. Chan + Stephanie M. L. Tan

Project Team: Chris Y. H. Chan + Stephanie M. L. Tan
Location: North Point, Hong Kong, China
Competition Award: First prize (open group)
Type: Urban planning + waterfront design
Organizer: Hong Kong Government, Eastern district
Concept and Approach: Organic urbanism
Theme: Expanding field

www.archdaily.com

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Discover islands of green in the city
The Standard
Wednesday, December 12, 2012

It is a great pity that Hong Kong's town planning practices from decades ago have left us with a lack of green space in our urban areas.

The problem is that it is difficult to reverse many planning decisions from the past, and it is not practical to create big open park space in the now densely developed downtown areas.

However, it is often possible to create small-scale open spaces or to enhance existing ones to make them greener and generally more pleasant.

The Development Bureau has a greening, landscape and tree management section that has produced a series of booklets on such spaces.

The series called Tree & Landscape Map covers individual districts and highlights all sorts of hidden and well-known patches of greenery dotted around our city areas as well as noteworthy clusters of trees.

How many workers or even residents in Wan Chai know that the district has its own green trail going up through the woods above the heavily developed district?

How many commuters who spend every working day in Central have discovered the Memorial Garden tucked away near City Hall or the sitting-out area near Queen Street with its little Chinese herb garden?

Similarly, how many people from outside the districts know of Hutchison Park in Kowloon City or the Tai Kok Tsui waterfront?

Some of these places have been around for a while, but others are new and a sign of a new priority for a greener Hong Kong. Find out more at http://www.greening.gov.hk.

Bernard Charnwut Chan, chairman of the Antiquities Advisory Board, sees culture from all perspectives.

[hkskyline]

Wheelock snaps up site for $1.97b
The Standard
Friday, December 14, 2012





A seaside development site in Tseung Kwan O sold by tender yesterday for HK$1.97 billion - below market expectations.

Meanwhile, a small plot in Jordan fetched HK$194 million, in line with expectations.

Wheelock (0020) snapped up the 171,890-square-foot site, 68A1, in Tseung Kwan O. With a maximum gross floor area of 429,731 sq ft, the land premium translates into an average of about HK$4,580 per buildable sq ft - lower than market expectations by up to 7 percent.

Wheelock executive director Ricky Wong Kwong-yiu said the relatively low land plot ratio allows the group to construct 400 luxury flats sized between 700 and 1,100 sq ft.

Those units should sell for at least HK$9,000 psf, according to Centaline surveyor James Cheung King-tat.

The site was cheaper on a buildable sq ft basis than the neighboring Area 68A2 plot, which was sold last month to a partnership between Lai Sun Development (0488) and Walter Kwok Ping- sheung for HK$4,929 psf.

Meanwhile, the successful bidder for the 2,920-sq-ft site on Kwun Chung Street, Jordan, was Rykadan Capital (2288).

The government reaped HK$7,374 per buildable sq ft - in line with market expectations - for the residential/retail lot, which has GFA of 26,275 sq ft.

Midland surveyor Alvin Lam Tsz- pun said new units could be sold at above the HK$12,000 psf level, with shops available in the project boosting prices.

Separately, 18 developers have submitted expressions of interest to the MTR Corp (0066) for another seaside residential plot close to Tsuen Wan West MTR station. The land is estimated to be worth up to HK$2.9 billion.

Kowloon Development (0034) will launch its Upper West project near Olympic station next month, said sales general manager Yeung Chung-wing.

[kreeves1]

Thanks for this thread as I learn more about Hongkong. I love to travel and know the facts about every country.

[hkskyline]

One West Kowloon
http://www.onewestkowloon.com.hk/
873 Lai Chi Kok Road
2 Towers of 36 storeys each (labelled to 45/F)

[Minsk]

Hong Kong-born architects to partner on first building in the West Kowloon Cultural District

West Kowloon Cultural District is soon to blossom into life with the announcement of two partnering architects who will collaborate to realise the first of 17 core arts and cultural venues at this exciting new development in Hong Kong. Vancouver-based Bing Thom Architects will work with Ronald Lu & Partners of Hong Kong on this significant scheme which will set the benchmark for the next 16 cultural buildings destined for the District.

Speaking on the announcement, Hong Kong-born Thom stated: “The commission for Hong Kong holds a special place in my heart, a true homecoming for me - my first building in my birthplace. It is an honour to return to design a home for this most authentic Chinese performing art, the first building for the West Kowloon Cultural District.”

The Xiqu Centre on the eastern edge of the District boundaries will be a base for this traditional form of Chinese opera, creating a new home from which these talented professionals can perform, educate, collaborate and attract new audiences. The volume will encompass 2,000 sq m of training and education facilities, two auditoria with 1,100 and 400 seats (the second to be completed in phase II) and a traditional Tea House with capacity for 280-strong audiences. All of this will be supported by ample public leisure space and framed by a flowing entranceway which drapes like the opening in stage curtains.

Thom continues: “The world is fast becoming a blend of Eastern and Western cultures and Hong Kong captures this magic by nurturing and celebrating Xiqu tradition. The Xiqu Centre design is a contemporary expression of a traditional Chinese opera building to show our wonderful art form to the world. The West Kowloon Cultural District gives Hong Kong talent its world stage!”

The design team was picked unanimously by a Jury Panel made up of prominent leaders in the relevant professional and cultural sectors in Hong Kong, China and internationally: Mr. Cui Kai, Architect, China; Prof. Odile Decq, Architect/ Urbanist, France; Mr. Jordi Farrando, Architect, Spain; Mr. Lee Shing See, WKCDA Development Committee member and Chairman of the Steering Committee and Engineer, Hong Kong, China; Mr. Mao Chun Fai, Fredric, Theatre Director, Hong Kong, China; Mr. Pau Shiu Hung, Architect, Hong Kong, China and; Mr. Yuen Siu Fai, Vice Chairman of the Chinese Artists Association of Hong Kong.

Source: www.worldarchitecturenews.com

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Would you pay $3m for this?
The Standard
Thursday, December 13, 2012

A deedless fire-damaged loft apartment in Sham Shui Po has sold at auction for HK$3 million - three times the opening bid.

The popularity of the 55-year-old seven-story building at 20 Pei Ho Street is attributable to its affordable price and good redevelopment potential, as it is located in the vicinity of several large- scale acquisition projects undertaken by the Urban Renewal Authority.

Alger Cheng Sai-kit, a general manager at CS Auctioneers Ltd, said the loft - one of eight units in the building - drew substantial interest from investors at last Thursday's auction.

"We received registrations from 50 groups of potential buyers before the auction," he said.

After fierce bidding, the repossessed loft with 654 square feet of saleable area was snapped up for HK$3 million by Peter Au, son of "distressed property king" Au Bo-wor.

"Au Bo-wor has not participated in investment for a long time," one investor commented. "He invested in old buildings in Tsim Sha Tsui, Jordan, Mong Kok and Sham Shui Po, and he has never made wrong calculations."

Other interested parties included veteran real estate investors such as "King of haunted homes" Ng Koon-lau, Chan Ying-kai and Yu Yiu-lau.

"Apart from residential purposes, the loft can be altered and turned into popular upstairs shops, which can be leased to businesses like barbers, for more than HK$10,000 per month," Ng said.

Chan suggested the flat could be subdivided in four units and rented out at a total of HK$12
,000 monthly, translating into a return of 4 percent.

There had obviously been a fire in the building, but it was uncertain where it broke out. A photograph displayed by the auctioneer showed the loft with smoke-damaged walls.

"At least HK$400,000 is needed for renovations. The walls of the flat are all blackened, and steel reinforcement bars are exposed due to the fire damage," said Chan, who had viewed the unit.

As the loft was sold under court order, the vendor cannot provide title documents, so the purchaser may be unable to obtain a mortgage.

As well, restrictions may also have been placed in the Land Registry by the Buildings Department, and the new owner would be responsible for all repairs, illegal structures, additions or alterations.

"When developers put a whole building for compulsory auction, repossessed flats can also share in the value. But in the private market, it is hard to get a mortgage on those flats, so the price is usually lower than the market level," said Charles Chan Chiu- kwok, managing director of Greater China at Savills Valuation and Professional Services.

Bidding for the loft opened at HK$1 million, rising in increments of HK$100,000.

The auction ended in five minutes, with paddles raised 22 times.

"I stopped bidding at HK$2 million," Ng said. "I didn't calculate the possible acquisition price beforehand. Otherwise, I would have been prepared to pay HK$3 million."

Chan Ying-kai said his ceiling price was HK$2.95 million.

Meanwhile, one street away from the Pei Ho Street site is the first demand- led acquisition project by the Urban Renewal Authority - a plot at 205-211A Hai Tan Street.

The acquisition price announced is HK$9,197 per square foot, based on saleable area - nearly double the HK$4,587 psf of the Pei Ho Street loft.

Early this year, the URA sent letters to residents in old buildings on Fuk Wing Street, Sham Shui Po, asking them if they were interested in selling or relocating.

At the time, the acquisition price for self-occupied flats was HK$8,398 psf - similar to the market value of a seven- year-old unit in the district.

Private developers are also actively acquiring old buildings as part of their own land banks, as well as bidding on URA redevelopment projects.

Wang On Group (1222), for example, announced in June that the company bought up old buildings at 140-142 Camp Street in Sham Shui Po.

However, media reports indicate that the uncertainty over whether the acquisition of old buildings will be exempted from the government's new buyer's stamp duty has already dampened developers' enthusiasm.

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Homes, poverty top Leung challenges
The Standard
Wednesday, January 02, 2013

Chief Executive Leung Chun-ying has vowed to overcome challenges to governance and said his administration is dedicated to improving citizens' livelihoods, including increasing land supply and providing more new homes.

On his blog, Leung also speaks of hopes that the SAR will see rapid economic development in the new year and that social problems such as housing and poverty will be resolved.

"Citizens may have different memories of the past year, but 2012 is over. Just like every Hong Kong citizen, I have new expectations for the new year," Leung wrote.

"I hope Hong Kong will see rapid economic development so that the community can better cope with housing, poverty, aging and environmental problems.

"I strongly hope that citizens can stay united, and support and coordinate with government policies so that the government can alleviate and resolve problems faster."

Leung said the government will continue to launch policies to improve livelihoods, including "increasing housing and land supply in the short, medium and long-terms, and better management of demand with a view to prioritizing the housing needs of permanent residents and maintaining the stable development of the housing market."

The needs of residents will also come first in terms of birth services in hospitals, he said, promising to "overcome challenges and push forward policies to improve livelihoods."

Leung also believes the Commission on Poverty will continue to help the government to set up a scientific poverty line, an important step toward resolving the problem.

Noting that the government's work in the new year will remain tough, Leung stressed that principal officials and civil servants will join hands to resolve deep-rooted social problems.

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Residential use a better option for ex-army camp site
The Standard
Friday, January 04, 2013



Extra conditions are apparently being shaped for those wishing to tender for a Fan Ling site intended for private university development.

Yet a report of additional terms for the former Queen's Hill military camp comes amid claims that some government officials have actually changed their overall thinking on the 16.4-hectare site.

They now want to reserve it for residential use in light of the soaring demands for homes, according to word received by Sing Tao Daily, sister newspaper of The Standard.

Yet another source claimed that the private university plan will proceed in tandem with the extra conditions, and only if they cannot be met will there be second thoughts on the use of the site.

One of the conditions, this person said, is that the university to be set up must shoulder the costs of roads, electricity and water rather than the government facing the overheads.

The costs must be weighed along with a demand that the university's fees are reasonable for high quality courses that match the needs of Hong Kong.

Officials are said to be awaiting the full list of conditions before they turn to a final drafting of the tender.

As the source pointed out, "if universities applying for the site fail to meet the conditions, there is no guarantee that the scheme will be approved."

Plans to develop higher education include six sites being reserved for developing private universities.

The site at Queen's Hill was revealed in the 2010 budget and is the biggest plot of land among the six, with space for a campus good for 8,000 students.

The government invited expressions of interest for development and received nine applications in 2011. Among them were the Society of Jesus and Edinburgh Napier University.

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Kwun Tong sites set to provide 2,500 homes
The Standard
Friday, January 04, 2013

The government is planning to convert several urban land plots into residential sites, providing some 2,500 private apartments that might be worth some HK$16 billion, plus public housing units.

The largest parcel recommended to be converted is a former quarry in Cha Kwo Ling, southeast of Laguna City in Lam Tin.

On the 18-hectare site, 3.21 hectares would provide private housing, with a gross floor area of 1.4 million square feet.

The Planning Department recommends that 15 private apartment towers be built - 16 to 22 stories each with no podiums - according to a consultation paper to Kwun Tong District Council.

They would provide about 2,200 homes and accommodate 6,000 people. The estate would be about a quarter of the size of Laguna City.

A primary school of 30 classrooms is planned in the area. There will also be 5.25 hectares of land left for green space. The planning will not affect the existing Cha Kwo Ling village.

The land is expected to be ready for development in the fiscal year 2018-19, as site leveling work needs to be done beforehand.

Meanwhile, the department also proposed a temporary car park at Lei Yue Mun be turned into residential use.

The 35,683-sq-ft site on Shung Shun Street, located between Lei Yue Mun Municipal Building and private housing estate Ocean One, had been planned for a multistory car park for years, but would be turned to another residential project to provide 195,366 sq ft of homes. The number of flats, however, has not been specified.

The department said it will provide 100 public car parking spaces as the site is close to the renowned seafood bazaar.

Midland Surveyors director Alvin Lam Tsz-bun said future residents on the Lam Tin site will enjoy sea views, and the homes should be worth more than HK$10,000 per sq ft if they were to be sold today.

He put the land value at more than HK$5,000 psf at present.

For the Lei Yue Mun site, a comparable development will be the newly completed Ocean One, which has been fetching HK$9,700 psf.

Meanwhile, the department is also considering two sites in Ngau Tau Kok and Yau Tong to be turned into public housing.

The 93,647-sq-ft Ngau Tau Kok site on Choi Hing Road had been planned for a secondary school, while the Yau Tong site at Pik Wan Road and Ko Chiu Road was a government-use plot left vacant.

The two plots will be handed over to the Housing Authority.

[hkskyline]

Gas surges through world's longest pipeline

BEIJING, Dec. 30 (Xinhua) -- China's second west-to-east gas pipeline, the world's longest line, became fully operational when the last section of the line opened on Sunday, China National Petroleum Corporation (CNPC) announced.

The 8,704-kilometer pipeline, including one trunk line and 8 regional lines, will carry natural gas from central Asia to as far afield as Shanghai in east China and Guangzhou and Hong Kong in south China.

The 142.2 billion-yuan (22.57 billion U.S. dollars) pipeline traverses 15 provincial regions and will benefit about 500 million people, according to the CNPC.

The pipeline's annual natural gas transportation capacity is 30 billion cubic meters. It runs from Huoerguosi, located on the China-Kazakhstan border in northwest Xinjiang Uygur Autonomous Region, to Hong Kong.

[hkskyline]

Sites grabbed as developers remain bullish
The Standard
Thursday, January 10, 2013

Two residential plots fetched nearly HK$3 billion, underscoring the confidence of developers ahead of next week's policy address, which is expected to be heavy with land-supply measures.



Wing Tai Properties (0369) and Manhattan Properties outbid nine other contenders to buy a 92,463-square-foot site at Kau To Shan, Sha Tin, at a higher-than-expected HK$1.47 billion.

With a gross floor area of 142,386 sq ft, the site costs HK$10,302 psf - higher than the HK$9,551 psf in the neighboring site that the consortium also won in August.

A Wing Tai spokeswoman said low-rise residential properties will be built on both sites.

Midland Surveyors director Alvin Lam Tsz-pun predicted that future apartments there could cost more than HK$20,000 psf.



A rare Sai Kung offering - a 166,089 sq ft plot in Sha Kok Mei, attracting 14 tenders - went to Sino Land (0083) for HK$1.46 billion, in line with market estimates.

The site, with a gross floor area of 249,133 sq ft, cost HK$5,840 psf. It carries a flat stipulation, in which 240 units have to be built.

"The aggressive bids and competition for both plots reflect the optimism of unfazed property developers amid the cooling measures," Lam said.

The results came as government sources said there is a wide range of short and long-term measures to be announced to boost the land supply.

They said public or subsidized housing will be built in 18 districts, including a 30-story public housing project with 690 flats in Tuen Mun.

More than 500 hectares will be provided through reclamation - including at Lung Kwu Tan in Tuen Mun and Siu Ho Wan on Lantau Island.

And more plots meant for government, institution or community uses will be turned into home developments, while plot ratios of undeveloped land, especially in the Northeastern New Territories, will be raised, the sources added.

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Accountants back Lee land scheme
The Standard
Friday, January 11, 2013


Source : http://www.pbase.com/jonathanwg/kamtin2

The Hong Kong Institute of Certified Public Accountants supports Henderson Land (0012) chairman Lee Shau-kee's idea of converting agricultural sites into homes without paying any land premium.

"Many developers have farmland as land reserves. The government should actively consider various feasible ways to increase land supply to satisfy the housing needs of the public," said Florence Chan Yuen-fan, HKICPA's chairman of taxation faculty executive committee.

The institute is predicting a budget surplus of HK$25.6 billion and a healthy fiscal reserve of HK$694.7 billion by March this year.

It suggests widening marginal tax bands from HK$40,000 to HK$50,000, increasing child allowances from HK$63,000 to HK$70,000 and expanding home loan interest deduction into rental payment deduction.

It also recommends voluntary MPF deductions with an annual cap of HK$60,000.

"This will encourage people to save and reduce government's expenditure in the long term," said Wilson Cheng Kit-sun, HKICPA's convenor of 2013-14 budget proposals subcommittee.

Tax deduction for private health care insurance premiums with an annual cap of HK$12,000 is proposed.

To help SMEs, HKICPA suggests a reduction of corporate profits tax rate to 15 percent for companies with gross income not exceeding HK$2 million, a waiver of business registration fee, an extension of profits tax exemption for offshore funds and exemptions for onshore funds meeting specific criteria.

Such measures will reduce government income by about 4.5 billion, the institute estimates.

A higher first registration tax and annual license renewal fee for polluting vehiclesis also proposed.

[hkskyline]

Homes for just $1m ...
The Standard
Monday, January 07, 2013

Tycoon Lee Shau-kee threw down the gauntlet to the government yesterday, saying he should be allowed to build 300-square-foot homes on vast agricultural lands held by his firm without having to paying any extra land premium.

The feisty billionaire and chairman of Henderson Land Development is proposing selling the units at HK$1 million each to ease Hong Kong's growing housing shortage.

Lee said social conflicts would ease if more people were able to buy homes.

Henderson is the biggest holder of agricultural land among local developers, with most of the 42.4 million sq ft over which it holds sway as of June located mostly in the northeast New Territories.

Negotiations over the extra land premium - what Henderson has to pay authorities to convert its farmland to residential or commercial use has dragged on for years.

For some sites, talks have apparently continued for decades, and last year other developers urged the government to speed up such negotiations.

The proposed HK$1 million price tag or HK$3,333 per square feet, is considerably modest compared with flats at Henderson's latest scheme, High Place in Kowloon City. There, a unit with a 182 sq ft saleable area, is selling for as much as HK$4.32 million, or HK$23,736 psf.

Michael Choi Ngai-min, a member of the government's long-term housing strategy steering committee, said Lee's proposal merits a serious consideration, but that the administration has to ensure the developer does not reap extra benefit from such projects.

Alnwick Chan Chi-hing, head of valuation and professional services at Knight Frank, said assuming a construction cost of HK$2,000 psf and the expenses acquiring the land, Henderson would reap very modest profits.

"But these homes can be built alongside private buildings, where other facilities such as a shopping mall can bring extra benefits," Chan said.

But Lawrence Poon Wing-cheung, senior lecturer at City University's building science and technology division, said the HK$1 million price tag looked promising as most of the sites were acquired at about HK$100 psf many years back.

Poon said if the low-cost home project is approved, the government should require homeowners to pay back the premium when they resell their apartments.

As for the general picture of the sector, Lee believes home prices will remain stable, following the imposition of an extra stamp duty to curb housing demand.

"They [ the measures] are focused on eliminating speculation, which is good for society ... some speculators have really pushed up home prices to unreasonable levels, and this is really outrageous."

Lee expects home prices to rise in a stable manner - by 5-10 percent annually for the next two years.

Lee said he hopes Chief Executive Leung Chun-ying can do more. "Anybody can do the job well as Hong Kong is a place where golden eggs are laid."

But he added, "I'm not saying I don't support him [Leung]."

Leung is set to deliver his inaugural policy address next Wednesday.

Lee, a frequent stock market player who is also dubbed Asia's Warren Buffet, forecast the Hang Seng Index would rise to 26,000 by the middle of this year and 28,000 by the year-end.

[hkskyline]

Tags reach High Place as developer runs with bulls
The Standard
Monday, January 07, 2013




Photo source : http://eng.28hse.com

Riding on the return of bullish sentiment, Henderson Land (0012) launched its latest project, High Place, at more than HK$22,000 per salable square foot, making it the most expensive residential scheme in Kowloon City.

Around 27 units at the 76-unit development were sold over the weekend.

They are among 46 flats sized from 286 to 433 square feet and bearing price tags of HK$3.95 million to HK$6.28 million, or an average of HK$14,079 psf.

With salable areas of 182-282 sq ft, the price translates to HK$22,032 per salable sq ft on average.

Units at The Opulence, another new Kowloon City project, are on the market for an average of HK$11,000 psf.

Flats at High Place have also been priced higher than the first units on offer at the second phase of The Wings in Tseung Kwan O.

The 780-unit Sun Hung Kai Properties (0016) project will put the first 50 units on the market this week at HK$9,537 psf on average.

A parking space at the project now fetches HK$1.38 million.

The past two days saw about 36 units sold in the primary market, with Henderson taking the lead and selling around 30 at The Reach, Yuen Long.

A mainlander bought a 603 sq ft unit for HK$4.23 million, or HK$7,027 psf, plus another HK$635,000 in Buyer's Stamp Duty.

Meanwhile, the weekend secondary market improved, with 22 deals recorded by Centaline Property Agency at the 10 major estates tracked, up from 17.

This is despite the rule taking effect last Tuesday on disclosure of salable area, under which agents must inform buyers of the net and gross floor areas.

Midland Realty also saw an uptick in secondary sales, with 25 homes changing hands at 10 major estates compared to 21 a week earlier. Both agencies saw the largest number of home sales at City One Shatin.

Separately, Estate Agents Authority chief executive Augustine Ng Wah- keung said most agents are following the new requirements in providing the salable area during flat sales.

But it will take the watchdog four years to check whether all 6,000 property agencies in the territory have amended their promotional materials.

[hkskyline]

CE uses Policy Address to detail housing policies
Wednesday, January 16, 2013
Government Press Release Excerpt

The Chief Executive, Mr C Y Leung, today (January 16) used his inaugural Policy Address to lay out the short, medium and long term strategy for dealing with Hong Kong's housing and land problems.

"In recent years, our urban development has taken a disturbing turn," Mr Leung said.

"All too often, there are wrangles over land use and infrastructure projects, leading to sluggish land development and housing shortage."

Mr Leung announced a multi-pronged approach to dealing with the shortage of land and accommodation and he urged the community to show resolve and work in a pragmatic and proactive manner in solving the problems.

The Chief Executive laid out a seven-point plan for increasing the supply of subsidised housing in the short and medium term, including

* Setting a production target to supply a total of at least 100,000 Public Rental Housing (PRH) units over the five years starting from 2018;

* Reviewing and expediting the construction of public housing flats without compromising quality;

* Inviting the Hong Kong Housing Society to build more subsidised housing similar to the Greenview Villa Project;

* Examining projects in the pipeline with a view to increasing their plot ratio;

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"To respond more flexibly to society's needs for land, the Government is determined to develop new land extensively and build up an abundant 'land reserve' that can more than meet the short-term demand," Mr Leung said.

"That way, the reserve can be used to meet future demand in a timely manner."

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To boost the supply of land for housing, the Chief Executive outlined 10 priority areas:

* Rezone 36 sites, including Government, Institution or Community (GIC) sites and other Government sites, with an area measuring 27 hectares in total, for housing development to provide about 11 900 residential flats;

* Commence the town planning process and rezone 13 sites in Green Belt areas, measuring 57 hectares in total, which are devegetated, deserted or formed for residential use;

* Rezone industrial land for non-industrial uses including a total of 16 sites measuring 30 hectares considered suitable for residential use and providing a total of about 20 400 units;

* Increase the development density of unleased or unallocated residential sites as far as allowable in planning terms;

* Optimise the use of land and, where the original intended use is not required anymore, to convert the land for housing development or other uses that meet the more pressing needs in the community as soon as possible;

* Consider relaxing or lifting a moratorium, which is an administrative measure, currently in force to restrict the sale of new land or modification to lease in Pok Fu Lam and the Mid-Levels, so as to lift development restrictions in these two areas;

* Increase efforts to put into full play the integrated development of mass transportation and residential property, explore vigorously the residential development potential of land along existing and planned railways, and take forward the planning for residential development on land of about 33 hectares in total estimated to provide about 8700 flats;

* Urban Renewal Authority (URA) to supply approximately 4.9 hectares of land in total under its property development projects in the coming four years, estimated to provide about 4700 flats;

* Expedite administrative approval procedures of the Town Planning Board and take other corresponding measures so that land is made available as soon as possible; and

* Develop the former Diamond Hill Squatter Areas (Tai Hom Village), former Cha Kwo Ling Kaolin Mine, former Lamma Quarry and Anderson Road Quarry, which do not involve land resumption, to provide a total of around 15 000 units.

"The 10 measures just mentioned will increase and accelerate housing land supply," Mr Leung said.

"Seven of these measures already will make available over 300 hectares of land for housing, providing about 128 700 units in the short to medium term based on known developments."

For long term supply of housing land, the Chief Executive identified a number of areas for possible development. These include New Development Areas (NDAs) in the North East New Territories and the use of underdeveloped areas in the New Territories North.

Also, the Planning Department will review agricultural land in North District and Yuen Long currently used mainly for industrial purposes or temporary storage, or which is deserted.

The Chief Executive also highlighted the advantages of Lantau Island for development due to its proximity to the west bank of the Pearl River Delta, Qianhai, Nansha and Hengqin, coupled with the availability of the Hong Kong-Zhuhai-Macao Bridge.

He added that reclamation outside Victoria Harbour could yield about 2 000 to 3 000 hectares of land for development.

"Extensive land development takes 10 to 20 years," the Chief Executive said.

"Our young people should recognise that the planning proposals and development options under discussion today are intended to address their future needs.

"It is all too easy for the Government to side-step the problem, but it is today's young people who will have to bear the adverse consequences in future."