Hong Kong launches pilot scheme to boost urban redevelopment

Hong Kong is implementing new measures to address urban aging and stimulate private sector redevelopment. The Development Bureau has announced a pilot scheme for extra plot ratio, set to launch on September 1. Running for five years until August 2031, the program targets seven old districts: Cheung Sha Wan, Ma Tau Kok, Mong Kok, Sai Ying Pun, Sheung Wan, Tsuen Wan, Wan Chai, and Yau Ma Tei. Developers who commit to demolishing residential buildings aged 50 years or older with a site area of at least 700 square meters can receive a 20 percent increase in gross floor area.

Developers can choose to either increase the total floor area or convert the extra plot ratio into land premium value to offset costs for the current or other land transactions. This value can be applied to projects in the Northern Metropolis or other regions for up to ten years.

In a related market development, Cushman & Wakefield is exclusively acting as the agent for the sale of a premium redevelopment site at 77-87 Braemar Hill Road, North Point. The site covers approximately 7,680 square feet and is zoned for commercial and residential use, offering flexibility for hotels, offices, or residential projects. The owner’s asking price is HK$1.2 billion, with expressions of interest due by September 28, 2026.