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LCQ3: Village land and Small House Policy
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     Following is a question by Dr the Hon Junius Ho and a reply by the Acting Secretary for Development, Mr David Lam, in the Legislative Council today (July 23):
 
Question:
 
     Article 40 of the Basic Law stipulates that the lawful traditional rights and interests of the indigenous inhabitants of the "New Territories" shall be protected by the Hong Kong Special Administrative Region. According to the Court of Final Appeal's judgment in 2021, all components under the Small House Policy are lawful traditional rights and interests of the indigenous inhabitants of the New Territories. However, there are views that the existing Small House Policy, which has been in force for over 50 ‍years, has become outdated in terms of its implementation and details. Regarding village land and the Small House Policy, will the Government inform this Council:
 
(1) whether it has recently reviewed the Small House Policy for indigenous inhabitants of the New Territories; if so, of the details; if not, the reasons for that;
 
(2) given that according to the paper submitted by the Government to the Panel on Development of this Council in December last year, the Government has commenced a consultancy study on how to promote urban-rural integration in the entire Northern Metropolis, which will include formulating guidelines on implementation of urban-rural integration, of the progress of the relevant work and the specific measures in place to promote village participation in development, so as to unleash land potential; and
 
(3) given that some members of the community have put forward a proposal for "ding" buildings, which involves pooling the rights and interests of various indigenous inhabitants of the New Territories in building small houses (commonly known as "ding" rights) to develop modern apartment buildings, whether the Government will take this proposal into consideration?
 
Reply:
 
President,
 
     The New Territories Small House Policy has been implemented since 1972, to allow a male indigenous villager aged 18 years old or above who is descended through the male line from a resident in 1898 of a recognised village in the New Territories to apply for permission to erect, for once in his lifetime, a small house for himself on a suitable site within his own village.
      
     In response to the respective parts raised by Dr the Hon Ho, our reply is as follows:
 
(1) The Court of Final Appeal (CFA) ruled on the judicial review of the Small House Policy in 2021, confirming that all components under the Small House Policy, namely Free Building Licence, Private Treaty Grant and Land Exchange, are lawful traditional rights and interests of the indigenous inhabitants of the New Territories within the meaning of Article 40 of the Basic Law. In view of the historical background of the Small House Policy, having been in operation for many years, and that the CFA has upheld its lawfulness and compatibility with the Basic Law, we currently have no plans to review the relevant policy.
 
     That being said, we appreciate the needs for eligible New Territories indigenous villagers to build small houses. Since 2021, the Government has streamlined the procedures for processing small house applications with a view to expediting approvals under the existing policy framework, including processing procedures under various aspects in parallel, simplifying the procedures for handling objections and conducting face-to-face meetings with applicants for direct discussion.
      
     The above measures have gradually shown results. The average number of small house applications processed by the Lands Department (LandsD) each year increased to more than 2 500 cases in the years from 2022 to 2024, surpassing its performance pledge of 2 300 cases, while the number of applications approved per year also increased from over 500 in 2022 to over 800 in 2024, representing an increase of more than 55 per cent.
      
     In addition, to expedite the development of small houses, the LandsD implemented in January this year, on a pilot basis, a self-certification scheme at the District Lands Office (DLO), Yuen Long, which allows lot owners to appoint registered professionals at their own expense to prepare and submit the relevant documents for self-certification of compliance of relevant approval requirements, thereby leveraging the resources in the industry and expediting the approval process. The LandsD will also streamline and expedite the approval process for applications submitted under the scheme with the target of completing the processing of cases within 10 weeks upon receipt of all required documents. The LandsD has extended the coverage of the scheme to DLO, North in July this year.
 
(2) The Northern Metropolis (NM) possesses many historical and traditional rural townships and precious natural ecology, which are embedded with rich historical and cultural resources. "Urban-rural integration" is one of the key focuses in the development of the NM. In planning new development areas, we will preserve the layout and appearance of traditional villages. Through proper planning to soften the urban-rural interface, we can integrate new development areas and the rural areas in harmony. The villagers will also benefit from new transport and other infrastructure and facilities, as well as new and diverse employment opportunities. With a view to bringing new business opportunities to villages and facilitating visitors to experience the rural culture, we are exploring further facilitation measures under the prevailing Small House Policy to encourage an appropriate provision of village shops, restaurants and home-stay lodging facilities. We will also appropriately conserve and revitalise historical buildings and provide venues for carrying out traditional activities to promote cultural heritage. By combining tourism resources such as natural ecology and historical buildings, we can promote "tourism is everywhere" and enrich the rural living experience.
 
     The Government has engaged a consultant to formulate the policies and approaches to further promote "urban-rural integration" in the development of the NM. During the process, various stakeholders including the villagers would be consulted. We will report the progress to the Legislative Council at an appropriate juncture.
 
(3) The intent of the Small House Policy is to enable the habitation of indigenous inhabitants in low-density village environments. The permission of "ding" buildings or high-density development is not compatible with the policy intention. The existing legislation has also set out clear rules regarding development of small houses. In accordance with the Buildings Ordinance (Application to the New Territories) Ordinance (Cap. 121), a small house shall neither contain more than three storeys nor exceed a height of 8.23 metres (27 feet) and the maximum roofed-over area of the house shall not exceed 65.03 square metres (700 square feet). From a planning perspective, land originally planned for low-rise and low-density development may not be suitable for high-rise and high-density development.
 
     Hence, whether seen from either the policy, legal or planning perspective, the "ding" building proposal will represent a significant deviation from or change to the prevailing arrangements for small houses. Separately, the Government is taking forward the development of the NM in full force. The NM closely relates to the overall public interest and, upon its full development, will supply 3 000 hectares of land with 500 000 new housing units for members of the public from all walks of life, and provide substantial land for industry development and create diverse employment opportunities. Development of the NM is both a consensus of our society and the priority of the Government. Given its controversy, we therefore do not consider it appropriate to consider the "ding" building proposal at this juncture, as doing so will invariably spark discussion and divert the Government's efforts and resources.
      
     Thank you, President.
 
Ends/Wednesday, July 23, 2025
Issued at HKT 15:00
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