Hong Kong set to reduce sellers threshold for old buildings to as low as 65% in 7 areas under urban renewal bid

Hong Kong is poised to lower the threshold for the proportion of owners who must consent to sell old private buildings to as low as 65% in seven neighbourhoods. This is part of the government's initiative to expedite urban renewal. The proposed legal amendment is slated to be presented to the Legislative Council for a first reading in January and is anticipated to take effect in the first half of 2024.

Under the current system, a minimum of 80% of owners must consent to sell a building aged 50 years and above for redevelopment. The government aims to incentivise the private sector to participate in the redevelopment of old and dilapidated buildings. During the public consultation, some expressed the desire for the government to consider the redevelopment needs of certain old districts. Others deemed 60% too low when compared to other countries such as Japan and South Korea, which offer more protection to the minority owners.

The Chief Executive first proposed lowering the compulsory sale application threshold for old private buildings as part of his maiden policy address last year. Authorities are striving to accelerate urban renewal efforts as the city grapples with a supply of rapidly ageing buildings. The number of private buildings aged 50 and above has surged from 4,500 to 9,600 over the past decade, with only 1,600 undergoing redevelopment. The government hopes that the latest amendment will expedite the redevelopment process.