Following is a question by Dr the Hon Wendy Hong and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (September 10):
 
Question:
 
     It is learnt that in recent years, the Government has actively promoted urban renewal, replacing large-scale redevelopment with a "rehabilitation first" strategy to improve building structural safety and prolong their lifespan. Members of the public have recently relayed to me that, even when rehabilitation works have been completed for the buildings and safety standards met to prolong their service life, banks still adopt the "75 minus building age" calculation method (i.e. residential properties over 55 years old can only be granted a maximum mortgage term of 20 years) when assessing mortgage applications. This not only adds to the burden of down payments and monthly mortgage payments on members of the public, but also reduces the liquidity of old buildings. In this connection, will the Government inform this Council:
 
(1) as it is learnt that the Government is vigorously promoting building rehabilitation as an alternative to redevelopment, whether the authorities have discussed with the Hong Kong Monetary Authority the possibility of appropriately extending the mortgage term for buildings that have completed rehabilitation and passed safety inspections; if so, of the details; if not, the reasons for that;
 
(2) whether the Government will consider establishing a certification mechanism for buildings that have completed prescribed inspections and prescribed repairs, so that banks may consider extending the mortgage term when approving mortgages for such buildings; if so, of the details; if not, the reasons for that; and
 
(3) whether it has compiled statistics on the following information of residential properties currently aged 50 years or above: (i) the total number, (ii) the number of households having mortgages among them, and (iii) their median monthly mortgage payments and loan repayments; if it has not compiled statistics, of the reasons for that?
 
Reply:
 
President,
 
     After consulting the Development Bureau and the Hong Kong Monetary Authority (HKMA), our reply to the three parts of the question is as follows:
 
(1) & (2) The Government's strategy for building renewal emphasises both rehabilitation and redevelopment. The Buildings Department (BD) annually selects about 600 private buildings (Note 1) aged 30 years or above on a risk basis and the owners of such building served with statutory mandatory building inspection notices (MBI notices) are required to carry out inspections and repairs for the common parts of their buildings and the projections of the individual units. Among the 8 364 buildings served with MBI notices so far, about 70 per cent of them aged 50 years or above. Proper maintenance and repair of properties are owners' primary responsibility. It not only protects the safety of residents, buildings and the public, but also extends the buildings' lifespan, which has a positive impact on the property values.
 
     If the owners have complied with the requirements of the MBI notices, the BD will issue compliance letters to the owners. Besides, the public can enquire and view the service and compliance status of the statutory notices of the private buildings via the BD's website. Where owners have voluntarily arranged and carried out building inspection and repair in accordance with the requirements and procedures under the Mandatory Building Inspection Scheme, the BD will also issue acknowledgement letters to the owners.
 
     The HKMA does not set a specific mortgage term limit based on the age of a property. The approval of loans is a commercial decision made by banks. When processing mortgage applications, banks take into account a host of factors, including the borrower's repayment capacity and the condition of the building. The age of the property is only one of the factors of consideration. When considering whether to approve mortgage applications for a residential property, the abovementioned information issued by the BD regarding the completion of inspection and repair of the building may assist banks in evaluating the condition of the building.
 
(3) According to the BD's record, as at the end of 2024, there were 8 977 private residential buildings aged 50 years or above (excluding New Territories Exempted Houses). As regards whether the units in those private residential buildings have a mortgage and the specific details about the mortgage loan payments and repayments, they are agreements reached between the property owners and the banks. The Government does not maintain relevant commercial data for statistical purposes.
 
Note 1: Except domestic buildings not exceeding three storeys.

Ends/Wednesday, September 10, 2025
Issued at HKT 15:30

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