URA to issue acquisition offers to three redevelopment projects in Kowloon City

The Urban Renewal Authority (URA) today (Wednesday) issues acquisition offers to property owners affected by three of its redevelopment projects in Kowloon City, namely Chun Tin Street/Sung Chi Street Development Scheme (KC-008(A)), Hung Fook Street/Ngan Hon Street Development Scheme (KC-010) and Kai Ming Street/Wing Kwong Street Development Project (KC-013). 

Projects KC-008(A) and KC-010 were commenced in May and June last year respectively, whereas Project KC-013 was commenced in March this year.  KC-008(A) and KC-010 Development Schemes were subsequently approved by the Chief Executive in Council on 31 October 2017 and KC-013 Development Project was authorised by the Secretary for Development on 9 October 2017.

Eligible owner-occupiers of domestic properties of the three projects will be offered $15,916 per square foot of saleable area which is the unit rate of a notional replacement flat of seven years old situated in the same locality (“Notional Unit Rate”).  The Notional Unit Rate, which was assessed on 31 October 2017, was approved by the Land, Rehousing and Compensation Committee (LRCC) of the URA Board last Thursday.

In line with the established mechanism, the URA appointed seven independent consultancy firms by open ballot to assess the Notional Unit Rate for KC-008(A), KC-010 and KC-013 projects separately on the same date, that is 31 October 2017.  The whole process is transparent and open.  As the three projects are in close proximity to each other in the same locality and the date to issue offers to the owners of the three projects is the same, the LRCC approved that the highest Notional Unit Rate among the three projects will be adopted as the single Notional Unit Rate applicable to all three projects.

Owing to the unique circumstances of Project KC-008(A), there is an one-off special measure for this project.  The Chun Tin Street/Sung Chi Street Development Project (KC-008), which was commenced in January 2015, was withdrawn by the URA when it commenced the KC-008(A) Development Scheme on 6 May 2016.  KC-008(A) covers the same building blocks of KC-008 and includes Chun Tin Street for greater planning and community benefits, such as improved local road network and pedestrian environment.  An one-off special measure was introduced to help relieve the concerns of the owners and tenants on the long waiting period of the approval of the Development Scheme Plan KC-008(A) by the Town Planning Board. 

In accordance with the one-off special measure, the URA had issued offers to owners of KC-008(A) in July 2016, which included the market value (MV) of the properties and advanced payment of the ex-gratia allowance (EGA) based on the Notional Unit Rate, assessed on the commencement date of the KC-008(A) project on 6 May 2016, and undertook to assess the MV and EGA again based on the Notional Unit Rate to be assessed on the approval date of KC-008(A) project and to pay the owners the higher of the two.  The MV and EGA based on the Notional Unit Rate were assessed again on 31 October 2017 (the approval date of the project KC-008(A)), which is higher than that assessed on the commencement date of the project.  Under the one-off special measure, the URA shall pay the owners of KC-008(A) who had sold their properties to URA the difference.  As regards those owners of KC-008(A) who had not accepted the URA’s earlier offer assessed on 6 May 2016, the URA will on this occasion offer to them the MV and EGA based on the Notional Unit Rate assessed on 31 October 2017, which is the higher of the two.

In addition, eligible domestic owner-occupiers of KC-008(A), KC-010 and KC-013 will have a choice of an in-situ flat-for-flat (FFF) unit in any one of the future new developments to be constructed on the three project sites, or FFF unit at the URA’s Kai Tak Development.  Since FFF units at Kai Tak Development have been offered to the eligible domestic owner-occupiers of three earlier projects in Kowloon City in July this year, who will be invited to attend the flat selection scheduled for 16 January 2018,  FFF offers of the remaining units at Kai Tak Development will only be made to eligible domestic owner-occupiers of KC-008(A), KC-010 and KC-013 in late January 2018.

Projects KC-008(A), KC-010 and KC-013 altogether affect a total of 630 property interests.  All property owners will have 60 days to consider the URA’s offers.  It is estimated that there are a total of about 852 households in the three projects.

After completion of the property acquisition, the URA will make ex-gratia allowance or rehousing arrangement for the domestic tenants concerned, if eligible.  The enhanced policies for ex-gratia allowance and rehousing to domestic tenants, as well as ex-gratia allowance for non-domestic owner-occupiers and non-domestic tenants, which were approved by the URA Board in June this year, are applicable to these three projects.

The URA will organise briefings for the affected owners, residents and shop operators to explain to them the acquisition, ex-gratia allowance and rehousing arrangements.  Two urban renewal social service teams appointed by the Urban Renewal Fund provide counselling and practical assistance that the residents may need.  The social service team for KC-008(A) and KC-013 is staffed by professional social workers of Hong Kong Lutheran Social Service Urban Renewal Social Service Team (Tel.: 3596 6850), while KC-010 is serviced by St James’ Settlement (Tel.: 2857 1606).

The URA will redevelop Projects KC-008(A) and KC-010 separately, while KC-013 will combine with the adjoining Wing Kwong Street Project (KC-012) for a holistic redevelopment with a view to rejuvenating the district with greater planning and community benefits such as more effective road network.  KC008(A), KC-010 and the combined site of KC-013 and KC-012 altogether occupy a total area of about 10,433 square metres.  Subject to further review, the URA’s initial plan is to provide a total of about 65,085 square metres of residential floor area and about 12,997 square metres of commercial/retail floor area in KC008(A), K-010 and the combined site of KC-013 and KC-012.  KC-008(A) and KC-010 are tentatively scheduled for completion by 2025/2026 and the combined site of KC-013 and KC-012 is estimated to complete by 2026/27.

(ENDS)