Hong Kong – Land resumption of three land parcels in Fanling and Yuen Long

     The Development Bureau announced today (May 13) that private land within three land parcels that have been zoned for high-density housing development in the relevant statutory outline zoning plans (OZPs) would be resumed under the Lands Resumption Ordinance (Cap. 124) (LRO) for subsidised housing. 
      
     The respective locations and zonings of the three land parcels are as follows:

     1. A land parcel with an area of 3 500 square metres zoned as “Residential (Group A)” (R(A)) at San Wan Road near Wong Kong Shan in Fanling;
     2. A land parcel with an area of 7 000 sq m zoned as R(A) at Shap Pat Heung Road near Lung Tin Tsuen in Yuen Long; and
     3. A land parcel with an area of 5 300 sq m zoned as “Comprehensive Development Area” (CDA) near the junction of Yuen Lung Street and Yau Tin East Road in Yuen Long.

     The plans of these land parcels are at Annex 1. The 12 300 sq m of private land, together with adjoining government land of about 3 500 sq m, are expected to produce around 1 600 flats based on the existing development parameters specified for the land use zonings.

     “The Government would strive to complete the land resumption process as soon as possible. The Lands Department has commenced pre-clearance surveys at all three land parcels today,” a spokesperson for the Development Bureau said. 

     These three parcels were identified earlier, alongside with seven other land parcels, for the review on private land zoned for high-density housing development (the Review) which was one of the measures announced by the Chief Executive in the 2019 Policy Address to intensify Government‑led planning and land resumption efforts. These 10 land parcels have been zoned as CDA or R(A) with a domestic plot ratio ranging from 5 to 7.5, but where the sites are yet to be developed by the lot owners as intended under the concerned land use zonings.

     For the three land parcels to be resumed, they have been zoned for high-density housing development since late 1980s/early 1990s. There is no active lease modification and land exchange application for these land parcels. Since these three land parcels are assessed to be suitable for high-density subsidised housing development taking account of such considerations as the overall planning of the area concerned; community facilities and infrastructure available in the area; the location, size, development parameters and existing uses of the land parcels, etc, the Government will invoke the LRO for resumption of the private land therein, to achieve the public purpose of utilising the land for subsidised housing. Following the statutory resumption process, the Government will seek authorisation of the Chief Executive in Council after taking into account any objections received from affected stakeholders.

     “While these sites have been zoned years ago for a higher density development with a view to encouraging optimal site utilisation by private initiatives, the announcement today indicates the Government’s readiness to take the lead in developing these sites through resumption for a public purpose if the potential has not been realised in a timely manner,” the spokesperson said.

     “With immediate effect, the Lands Department will not accept any new application for lease modification and land exchange concerning these three land parcels,” the spokesperson added. 

     For the remaining seven land parcels identified for the Review, two of them are considered not suitable for high-density subsidised housing development (locations and plans at Annex 2). One of them (item 1 of Annex 2) is located in an industrial area with an active operation on site and in its neighbouring area, and the planning intention has been to redevelop the site primarily for commercial use. Since the local circumstances have not changed, there would be a land use compatibility issue if the site is used for housing. The other land parcel (item 2 of Annex 2) suffers from severe geological constraints which have significant cost-effectiveness implications if the land were to be used for subsidised housing development.

     As for the other five land parcels covered by the Review, they would not be resumed for subsidised housing development at this stage. Three of these land parcels have lease modification or land exchange applications being actively pursued by the lot owners to realise the development potential envisaged under the current zonings, and the Lands Department will continue to process these applications according to the established arrangement. The remaining two land parcels are subject to further review on their cost-effectiveness for subsidised housing development, taking into account the massive clearances to be required vis-à-vis the relatively low estimated flat yields currently envisaged.
      
     The specific locations and details of these five land parcels would not be disclosed taking account of the commercial sensitivity involved and the need to prevent jeopardising the Government’s further review of the potential for subsidised housing in the light of changing circumstances. 
      
     Land supply tops the policy agenda of the current-term Government. The Government has intensified its efforts to expedite development projects, including invoking the LRO and other applicable ordinances to resume the private land involved for development of subsidised housing and related facilities. Both the extent and pace of land resumption has been significantly increased in recent years. Within a two-year time frame in 2019-20 and 2020-21, the Government resumed around 90 hectares (ha) of land (including around 80 ha of land for New Development Areas (NDA) and subsidised housing development), which is much more than the 20 ha resumed over the immediate past five years. Looking ahead, about 700 ha of land (including more than 600 ha of land for NDA and subsidised housing development) are expected to be resumed from 2021-22, of which around 500 ha of land (including around 400 ha for NDA and subsidised housing development) are expected to be resumed in the next five years (i.e. from 2021-22 to 2025-26).