| News
Stories: |  |
Click-on these
handy "jump links" to quickly access the news item
you're looking
for. 1.
Shatin to Central Link to be announced before Exco
recesses? 2.
Mixed Development for North Point Estate Approved 3.
Building plans approved in April 4.
Housing review completed 5.
Hysan on hunt for debt-hit properties 6.
More railway lines urged in route to healthier future 7.
KCRC facing $2b-plus land premium at Ho Tung Lau
1. Shatin to Central Link to be announced before Exco recesses? HKEJ
quoted the transport spokesman of the Democratic Alliance for the Betterment of
Hong Kong (DAB) Pang Cheung-wai as saying the government would like to announce
the results of the bid for the Shatin to Central Link (SCL) before Exco went to
summer recess on 9 July. Speaking after meeting Principal Assistant Secretary
for Transport M L Wan, Mr Pang said the government hoped an announcement would
be made as soon as possible. Mr Wan reportedly told Mr Pang that the government
was in favour of building SCL in phases. The section from Tai Wai to Diamond Hill
was technically easier and the government hoped it would be completed in 2005.
As for DAB's request of adding Hin Keng, Tsz Wan Shan and Whampoa stations to
SCL, Mr Wan said the government would support the successful bidder to add those
stations if it did not require additional funding from the government. [Source:
Independent Source, 19 June 2002] 2.
Mixed Development for North Point Estate Approved
North Point Estate will be redeveloped together with the adjacent Government land
in a mixed development approach approved by the Housing Authority (HA). To enable
and facilitate the joint site redevelopment scheme, the Authority also authorized
the Director of Housing to execute a Memorandum of Understanding (MoU) with the
Government which sets out clearly the entitlements and obligations of both parties.
The Authority, which holds a proper land title to the 27,776 m2 NPE site, has
considered all possible redevelopment options and concluded that the mixed development
approach offers greater economic and social benefits in terms of utilization of
land resources, said Mr Lau Kai-hung, the Housing Department's Business Director/Allocation
and Marketing. "The approach best balances the interests and aspirations
of all stakeholders and the community," Mr Lau maintained, noting that the
latest decision follows an earlier endorsement by the Authority's Strategic Planning
Committee. Under the approved scheme, the HA has to surrender the NPE site to
the Government for inclusion in the public land sale programme after demolition
and site formation works have been completed. In return, it will receive free
from the developer 25% of the total domestic gross floor area (GFA) for sale as
subsided home ownership (SHO) flats to eligible purchasers. "Based on the
agreed financial principles that it will be no worse off under the scheme than
under the conventional Home Ownership Scheme (HOS) redevelopment, the HA will
receive proceeds from the Government representing the difference in value between
the HOS option and the value to the HA from the SHO flats," Mr Lau said.
Noting that the scheme will produce a total of around 3,430 residential flats
in two phases, Mr Lau explained that the 75:25 split between private and SHO flats
represents an optimum balance in securing the interests of the HA and those of
the Government while at the same time maintaining the attractiveness of the site.
The first phase, comprising about 1,290 private and 430 SHO flats, is scheduled
for completion by 2008/09, followed by the second phase of about 1,280 private
and 430 SHO flats by 2011/12. Mr Lau said the building standards, quality and
finishes of the SHO flats would be comparable to those of the Authority's HOS.
As for location, it would be determined by an arrangement that is fair and equitable
to the Authority, with consideration given to have the SHO and private flats in
separate blocks. He added that the quality of the SHO flats as well as the Authority's
optimum financial returns would be protected by the MoU that the Authority would
enter into with the Government. "Thanks to the initiative by the HA to adopt
a scheme that could unlock the development potentials of otherwise under-utilised
prime urban sites, a more integrated community will emerge upon redevelopment
- with offices, commercial facilities, a hotel, a waterfront promenade and a transport
interchange" he remarked. "The mixed development approach also serves
as an effective model in using private sector resources to improve the quality,
variety of design and standard of management of public housing," Mr Lau suggested.
The existing NPE, completed in 1957, is the oldest public housing estate on Hong
Kong Island. It was announced for redevelopment in March 2000 and all residents
are expected to vacate the site by August this year. [Source:
Hong Kong Government, 18 June 2002] 3.
Building plans approved in April
The Buildings Department approved 25 building plans in April -- five on Hong Kong
Island, five in Kowloon and 15 in the New Territories. The approved plans covered
eight for apartment and apartment/commercial developments, two for commercial
development, six for factory and industrial developments, and nine for community
services developments. In the same month, consent was given for works to start
on 20 building projects, which will provide on completion 96,763 square metres
of usable domestic floor area and 19,060 square metres of usable non-domestic
floor area. The department also issued 13 occupation permits -- two on Hong Kong
Island, four in Kowloon and seven in the New Territories. Of the buildings certified
for occupation, the usable floor areas for domestic and non-domestic uses were
91,147 square metres and 5,377 square metres respectively. The declared cost of
the new buildings completed in April totalled about $1.884 billion. In addition,
six demolition consents involving six building structures were issued. The department
received 1,486 complaints against unauthorised building works in April, and issued
2,718 removal orders on unauthorised works. [Source:
Hong Kong Government, 18 June 2002] 4.
Housing review completed
The government has completed a two-year review on the structure of various housing
bodies. The report will be released within the next 10 days pending endorsement
by the Executive Council. Chief Secretary for Administration Donald Tsang, chairman
of the review committee, said he hoped the report would clarify the responsibilities
of the housing bodies so the market would in future receive clear messages on
government housing policy. Sources say the report will recommend centralising
the authorities under the new minister of housing, who will be appointed under
the accountability system. The Housing Department and the Housing Bureau are expected
to merge, with the Housing Authority likely to play an advisory role after the
restructuring. But Tsang said the incoming housing minister had not been consulted
in this review. Asked if he could have waited until the housing minister had been
appointed before he made the findings public, Tsang said the review had taken
two years and the government could not continue to drag its feet. The review began
at the end of 2000 when Chief Executive Tung Chee-hwa appointed then Chief Secretary
for Administration Anson Chan, to review the housing bodies following a series
of short-piling scandals. The task was passed on to Tsang when Chan retired last
year. ``We have a system to follow. The findings will have to be approved by the
Chief Executive and members of the Executive Council,'' Tsang said. ``Whoever
comes in will act according to the system. The question of having to do it all
over again does not arise.'' Tsang added the findings would not be controversial.
``It's a technical review, not a major policy review.'' Tsang declined to disclose
details of the findings but outlined the five key areas covered in the review.
Overlapping of responsibilities between the four housing bodies - the Housing
Authority, Housing Department, Housing Society and Housing Bureau. Accountability
of these bodies. Who is in charge. Organisation and manpower. Housing provided
by other related bodies, namely the Urban Renewal Authority, the MTRC and KCRC.
Tsang admitted grey areas in the responsibilities of the various bodies which
meant confusion in communications. ``The market has no confidence in the housing
supply and this has affected stability,'' he said. The internal affairs of the
various bodies was also an issue. The Housing Department staff, for example, grew
from 6,000 to 15,000 at one point. But whatever changes take place, Tsang maintains
it is still government policy to provide housing to those in need and to offer
opportunities to those who want to buy their homes. [Source:
The Standard, 19 June 2002] 5.
Hysan on hunt for debt-hit properties
Listed Hysan Development is looking for investment opportunities, particularly
in properties belonging to heavily debt-ridden companies, chairman Peter Lee says.
Hysan, one of the biggest commercial landlords in Causeway Bay, has about 4.7
million gross square feet of investment properties. Lee said Hysan had a HK$7.8
billion cash pile and expected some companies would need to dispose of projects
to reduce debt when interest rates started to rise. Hysan would consider buying
investment projects if the potential returns were satisfactory and fitted in with
its expertise, Lee said. ``Hysan will not consider buying a trousers factory even
if the factory can bring a good return, because our company does not have the
knowledge to operate such a business.'' Defining ``satisfactory returns'' would
depend on the time and situation. But Lee said a 5 per cent yield would be a good
return in a zero interest rate environment. Meanwhile, Hysan is still working
on a plan to connect its premises in Causeway Bay by bridges. However, the plan
will take time to materialise because various government departments are involved.
Commercial premises owned by Hysan in Causeway Bay include The Lee Gardens, Lee
Theatre Plaza and One Hysan Avenue. On the China market, Lee said Hysan would
concentrate on property investment and property development. But it was difficult
to identify a focus in China because many regions were changing, Lee told the
Hong Kong Economic Journal. A Hysan spokeswoman said the company would continue
to strengthen its main business in Hong Kong. [Source:
The Standard, 19 June 2002] 6.
More railway lines urged in route to healthier future
Green campaigners have urged the government to boost spending on rail projects
in an attempt to reduce noise and air pollution generated by road traffic. And
by funding railway projects through grants, rather than loan or equity capital,
fares could be lowered, they claim. Train fares are considered high by commuters
because they have ``to pay for everything'', according to a report, Sustainable
Transport in Hong Kong: Directions and Opportunities. The co-author, Civic Exchange
chief and former legislator Christine Loh, said the government should develop
the mass transportation system in ``a sustainable way'' through rail systems,
not roads. ``If the government grants some of the money that was originally for
road construction to railways ... it'll still have money left over for complementary
road improvements when needed,'' Loh said. ``So if you look at the actual sum
of the money the government has to spend, it can be less than building roads.''
William Barron, associate professor of Hong Kong University's Urban Planning and
Environmental Management Centre and another of the report's authors, suggested
Mass Transit Rail (MTR) passengers were paying more for their journeys to cover
MTR costs, because almost 80 per cent of its income came from fares. ``Only 10
per cent of MTR income is earned from property development,'' Barron said. ``If
the government gives money to rail systems, it can save more money by not building
so many roads, and we make money because rail systems raise property values along
the routes.'' He said fares would be lower if the government funded rail projects.
Under the current rail financing mechanism, systems do not receive direct government
grants. Operators may only build new lines when population density in catchment
areas hit 30,000-70,000, making projects commercially viable. ``In Singapore,
for instance, the government builds the rail lines and those riding the rail system
don't need to pay the construction cost,'' Barron said. ``Hong Kong is the only
place in the world where passengers pay entirely for rail lines.'' The population
density requirement for rail projects in Singapore and Taipei was 5,000-10,000.
The report said the government should fund two-thirds of the construction costs
of new railway lines by way of grants - not as loan or equity capital, on which
a profit must be returned. The SAR's transport management policy was also criticised.
``When you've got two bus companies running down the same roads, we suffer because
we have serious jams adding noise and air pollution at the same time,'' Barron
said. The report warned current transport policy would result in air quality at
street level remaining unhealthy for at least 14 years and even more gridlocks.
[Source:
The Standard, 19 June 2002] 7.
KCRC facing $2b-plus land premium at Ho Tung Lau
The Kowloon-Canton Railway Corp (KCRC) faces a bill of more than HK$2 billion
for the land premium on its Ho Tung Lau depot residential-retail development in
Sha Tin. It intends to tender the 1.5 million square feet project in the next
month to seek a development partner, pending the land premium settlement. The
development cost of the project is estimated at HK$4 billion. Sources said the
Lands Department initially had estimated an accommodation value of about HK$1,500
per square foot for the project, meaning the land premium would be about HK$2.3
billion. However, the department had yet to finalise the valuation, a source said,
because negotiations were under way with the KCRC to determine the construction
cost of a development podium on the site and related relocation expenses to be
deducted from the land premium. The KCRC had proposed a substantial land premium
reduction arising from the podium construction but the Lands Department would
take into account only part of the construction cost, he said. "The final
figure could exceed HK$2 billion even taking the podium construction cost and
relocation expenses into consideration," the source said. He indicated the
Government estimated the land premium mainly according to the price fetched for
a Sha Tin residential lot in April's land auction. Nan Fung Development and USI
Holdings bought a 1.93 hectare luxury residential site in Sha Tin for HK$660 million,
or an accommodation value of HK$1,512 per square foot. "[The Government]
assumes the two sites are directly comparable as both have good development potential.
The KCRC site is more conveniently located because of its proximity to the railway
station," the source said. He estimated the land premium would be determined
at full market value and the depot site carried no value in the assessment. The
future property development was built above the depot podium and the function
of the railway would not be affected, he said. Analysts said the Government was
justified in assessing the land premium according to the land auction result in
April since the property market had not changed significantly in the past two
months. Twelve developers have expressed initial interest in taking part in the
Ho Tung Lau project. The interested developers include Sun Hung Kai Properties,
Henderson Land Development, Cheung Kong (Holdings), Wharf (Holdings), Sino Land,
New World Development, Hang Lung Properties, HKR International, Nan Fung Development
and Pacific Concord. The 2.65 hectare site, next to Fo Tan Station, will produce
a gross floor area of 1.3 million square feet for residential use and 200,000
sq ft for retail use. [Source:
SCMP, 19 June 2002] |  |
|
