Calls grow for URA to tighten old building buyback policies as redevelopment costs soar
發佈日期: 2025-06-06 20:07
TVB News
In recent years, the Urban Renewal Authority has launched multiple redevelopment projects each at a cost exceeding 10 billion dollars.
A local think tank says to rein in rising costs, the body should review its "buyback offer" policy of referencing market prices of properties as new as seven years old.
Currently, five redevelopment projects under the Urban Renewal Authority have entered the property acquisition stage.
They include the "Lung Shing" project in Kowloon City, which comes with an estimated budget topping 15 billion dollars.
Alongside other major works, these projects are projected to cost 60 billion dollars in total. But, the URA's cash reserves stand at just 18 billion dollars.
Ryan Yip, the Vice President of Our Hong Kong Foundation says private developers typically acquire properties based on market value and the buildings' age. However, owners tend to expect the URA to offer higher prices on par with buildings as new as seven years old.
Yip said the policy also slows down private redevelopment.
Secretary for Development Bernadette Linn said the city's property market has been relatively weak lately, resulting in what she called a "buy high, sell low" problem for URA projects.
That means properties are bought at high prices but resold at lower-than-expected values or even go unsold, straining cash flow.
If the market remains sluggish and tender bids fall short of expectations, the URA will need additional financial support for its redevelopment work.
Terence Chong, the Executive Director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong said the URA has ongoing projects and outstanding bank loans.
He said if redevelopment is delayed, interest payments will rise. Chong added should property prices continue to dip, the deficits will deepen further.
The URA recorded a net loss of 3.9 billion dollars last year marking its second consecutive year in the red.
