1 Developers closer to 80pc law mark on old buildings
Staff reporter, The Standard 22 January 2008

Developers may get a reprieve in acquiring property for redevelopment from a new government proposal to relax the compulsory land-sale application threshold from 90 percent to 80 percent.

A Development Bureau paper on the proposal will be discussed in the Legislative Council development panel today.

The paper suggests a lower application threshold of not less than 80 percent for a lot with "all units but one" acquired, or a lot with the building aged 40 years or above.

The government aims to gazette it as a subsidiary legislation and put it forward to Legco for approval.

Under the current Land (Compulsory Sale for Redevelopment) Ordinance enacted in 1998, the developer or the owners should acquire 90 percent or more of all undivided shares in a building before applying to the Lands Tribunal for a compulsory sale of the whole building.

The government said 66 percent of respondents in a poll in April last year supported the proposal.

The bureau is proposing to designate a lot with "all units but one" acquired for a lower application threshold that could be applied to about 20,000 private buildings that are nine stories or below.

As for the "all building aged 40 or above," the poll found that people living in such buildings strongly supported the proposal.

But a considerable portion of respondents believed that the age of a building might not be sufficient in determining its need for redevelopment.

The government said age is not the only reason for consideration when it comes to redevelopment - the Lands Tribunal may turn down an application for a compulsory land-sale order if the developers failed to satisfy the requirement that age or the state of repairs required were the reason for redevelopment.

Currently there are over 7,500 private buildings aged 40 years or above.

The government said it has conducted a three- month consultation period involving academics, owners' representatives and building professionals.

The government, meanwhile, has dropped another proposal to lower the compulsory land-sale application based on "a lot with missing/untraceable owners."