URA issues acquisition offers to Kai Tak Road/Sa Po Road Development Scheme
The Urban Renewal Authority (URA) today (19 October 2020) issued acquisition offers to property owners affected by the Kai Tak Road/Sa Po Road Development Scheme (the Project) in Kowloon City. Eligible owner-occupiers of domestic properties of the Project will be offered $17,698 per square foot of saleable area, which is the unit rate of a seven-year old notional replacement flat situated in the same locality (“Notional Unit Rate”).
The Notional Unit Rate was approved by the Land, Rehousing and Compensation Committee (LRCC) of the URA Board. In line with the established mechanism, the URA appointed seven independent consultancy firms by open ballot to assess the Notional Unit Rate for the Project. The Notional Unit Rate was assessed by independent surveyors on 9 October, based on the transaction records over the past six months of appropriate properties located within the Lung Shing area of Kowloon City and nearby districts, with similar features of the properties under acquisition and their access to public transport, for comparison.
The URA’s prevailing acquisition policy for both domestic and non-domestic property interests is applicable to the Project. In addition, eligible domestic owner-occupiers of the Project will have the choice of a flat-for-flat (FFF) unit in the future development to be constructed on the project site (“Future Development”), or a FFF unit at the URA’s Kai Tak Development Project.
The Project covers about 460 property interests. All property owners will have 60 days to consider the URA’s offers. After completion of the property acquisition, the URA will make ex-gratia allowance for the eligible tenants and rehousing arrangement for the eligible domestic tenants.
The Project commenced in February 2019 and was approved by the Chief Executive in Council on 29 September 2020. Occupying a gross site area of about 6,110 square metres, the Project aims to rationalise the land uses through re-planning and restructuring and to improve the pedestrian walking environment. The Project will provide a split-level sunken plaza of about 1,000 square metres which will link up with the underground pedestrian tunnel connecting the Kai Tak Development Area (KTDA), thereby creating a nodal point between the old and new districts in Kowloon City and the KTDA to enhance walkability and connectivity. In addition, the Project will address the shortage of parking spaces in the vicinity of the project area by incorporating an underground public car park in the project, thereby creating more planning benefits to the community. The Project is targeted for completion by 2030/ 2031.
Subject to the future detailed design, the URA’s current proposal is to redevelop the site to provide about 40,140 square metres of residential floor area, and about 8,030 square metres of commercial/retail floor area, in addition to about 800 square metres reserved for government, institution or community purpose.
The URA will also introduce “a special arrangement for preserving local characteristics” (“the Special Arrangement”) to facilitate the operators within the Project area, who meet specified criteria in continuing their services and businesses in the Future Development. Under the Special Arrangement, operators of Thai restaurants and those long-established restaurants within the Project boundary will be given the priority to lease the reserved commercial units in the Future Development. The Special Arrangement will also include eligible operators of existing organisations serving the Thai and Chiuchow communities.
The URA will organise briefings for the affected owners, residents and shop operators to explain to them the acquisition policy, ex-gratia allowance, rehousing principles and “the Special Arrangement”. Appointed by the Urban Renewal Fund, a social service team staffed by professional social workers from St. James’ Settlement (Tel.: 2760 7301) will provide assistance to owners and residents in need.