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Supply of Small and Medium Flats
31. To address the shortage of first-hand small and medium flats, we have already reserved a site at the former Yuen Long Estate and will, as a pilot, specify in its sale conditions the minimum number of units and unit size restrictions. We are preparing to sell the site by tender later this year. In light of experience gained, we will explore applying this arrangement to other sites. We will discuss with the URA and MTRCL the provision of more small and medium flats in their urban renewal projects and residential developments along the West Rail respectively.
Monitoring the Sale of Flats
32. To enhance the transparency of the sale of first-hand private residential properties, the Government has implemented various measures over the past two years, covering such areas as price lists, sales brochures, sales arrangements, transactions and show flats. We have declared that we will legislate to regulate the sale of first-hand private residential units, if the existing regulation through the Lands Department's Consent Scheme and the guidelines of the Real Estate Developers Association of Hong Kong (REDA) proves ineffective.
33. As we cannot reach a consensus with the REDA on the regulation of the sale of first-hand completed flats, the THB will set up a steering committee to discuss specific issues on regulating the sale of first-hand flats by legislation and put forward practicable recommendations within one year, including the use of saleable floor area as the only basis for listing the price per square foot to avoid misleading buyers and eradicate the problem of "shrunken flats".
Review of the Capital Investment Entrant Scheme
34. The Government has reviewed the Capital Investment Entrant Scheme, and noted an upward trend in real estate investment, which accounted for 42% of the total investment under the scheme for the first nine months of this year. Despite the fact that real estate investments under the scheme in recent years have only represented about 1% of the total market turnover, the Government, in view of public concern, has decided to temporarily remove real estate from the investment asset classes under the scheme with effect from October 14. The Security Bureau will announce the implementation details and other changes to the scheme later.
Urban Regeneration Strategy
35. Urban renewal plays an important part in improving people's living environment. Urban regeneration is a key topic straddling a number of policy areas, including planning, land, housing, heritage conservation and social development. Public aspirations for urban renewal have also been evolving with changes in social values. With the two-year Urban Renewal Strategy Review, a consensus has been reached on most issues, taking into account the concerns of different stakeholders. On this foundation, we have revised our urban renewal strategy and will consult the public in the coming two months.
36. The new strategy is based on the core values of people orientation, public engagement and respect for local characteristics. It encourages government departments, public and private organisations, all sectors of the community and the URA to join hands to regenerate our urban areas.
37. We will set up District Urban Renewal Forums to collect views from professionals and local residents to formulate a blueprint for sustainable urban renewal. The first pilot forum will be set up in Kowloon City. Another emphasis of the new strategy is to establish rehabilitation and redevelopment as the URA's core business areas in future. The URA will serve as an "implementer" or "facilitator" in future redevelopment projects.
38. In addition, the URA will earmark $500 million to set up an Urban Renewal Trust Fund to support studies and activities to be conducted by the forums. The Trust Fund will also be funding the appointment and operation of social service teams, which provide assistance to residents affected by URA's redevelopment projects. Furthermore, the Trust Fund will subsidise preservation or revitalisation projects within the scope of urban renewal.
39. While maintaining the prevailing compensation level at the value of a replacement seven-year old flat in the same locality, we will introduce a "flat for flat" scheme as another option for owner-occupiers of residential properties affected by the URA's urban renewal projects. In this way, the affected households can continue to live in a familiar environment and keep their social networks. To enable early implementation of this arrangement, the Government will reserve residential sites at the Kai Tak Development Area for the URA to build residential flats for the purpose.
(To be continued)
Ends/Wednesday, October 13, 2010
Issued at HKT 11:31
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