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Old district redevelopment benefits the public but overspending should be avoide
The Urban Renewal Authority (URA) announced on 10 February that it would spend HK$1,760 million to implement a redevelopment project at Reclamation Street in Mong Kok. The project involves a row of old buildings over 50 years of age in average. As there are a lot of sub-divided units in the project area, it is estimated that the actual cost of acquisition and rehousing may be well over the estimated HK$1,023 million. In Hong Kong many old buildings still stand here and there, speeding up the process of urban renewal can bring about not only an improvement of the living environment for local residents but also an upgrading of the city image and public safety. However, the Reclamation Street project covers an area with a large number of dwellers living in sub-divided units. Compensating and resettling these dwellers will unavoidably raise the cost of acquisition considerably and the URA may stand the chance of recording a big loss. The authorities should study the possibility of increasing the plot ratio to allow more developable floor area for the project. This will offset the high cost of acquisition and contribute to the sustainability of old district renewal as well.
To offset the high cost of redevelopment, the authorities should be more flexible in setting plot ratios for redevelopment projects and increase developable floor areas. Not only will this put land resources to better use but will also give the URA greater land revenue, and as a result, the URA can lower property prices as much as possible. The benefits are threefold. The move may make quite an impact to the residents in the neighbourhood, but the wider society should treat the special plot ratio allowed for urban renewal projects with a rational and pragmatic attitude so that a reasonable balance can be achieved between renewals of old districts and environmental protection. At the same time, the authorities should give more support to the URA by means such as allocating certain public housing units for resettlement of affected residents to relieve the pressure of high acquisition cost and to provide shelter to the residents.¡@¡½Translation by ªF©ú tungming23@gmail.com
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