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Hong Kong to offer developers extra 20% plot ratio in old districts
The pilot will start next month and grants developers an extra 20% gross floor area, or a land premium equivalent, covering seven older districts including Sham Shui Po.
Housing markets in Hong Kong could get a boost for redevelopment as a government pilot incentive is set to launch next month, according to analysts cited by SCMP Economy.
The scheme, a bonus plot ratio pilot, will provide developers an extra 20% of gross floor area, or an equivalent land premium value, across seven older districts where redevelopment projects have stalled amid a sluggish property market.
SCMP Economy reports that the program is aimed at areas affected by acute urban decay, with analysts and lawmakers highlighting Sham Shui Po as a potential beneficiary of faster redevelopment.
Lawmaker Augustine Wong Ho-ming, who represents the real estate and construction sector, said the incentive effectively raises redevelopment value by 20%, making certain borderline-case aging buildings financially viable, and he noted Sham Shui Po may see quicker momentum than districts such as Wan Chai due to a higher share of borderline cases.