Opinion | URA has turned its back on local people in Kwun Tong redevelopment
Albert Cheng says the authority is failing in its basic duty to provide affordable housing in areas of urban decay, preferring to focus on profits
Kwun Tong is one of the oldest and poorest districts in Hong Kong. Most buildings there are, on average, between 40 and 50 years old and hence the area has been one of the biggest projects for the Urban Renewal Authority (URA) in recent years. Gentrification and the redevelopment of the area will be done in stages.
Work in the first redevelopment area is well under way. Earlier this week, the URA began work in the second and third areas, covering Hip Wo Street and Mut Wah Street. Redevelopment of these areas will comprise both commercial and residential projects. Eventually, the areas will be transformed into another Taikoo Shing - a popular residential and commercial area.
The total area for redevelopment is 230,000 sq ft, which will accommodate four blocks of between 42 and 48 storeys, providing 1,700 units of 600-800 sq ft each. The URA will set the price at HK$13,000 per sq ft, which means each unit will cost at least HK$7.8 million.
The bottom four floors, or podium levels, will be used for commercial purposes, a bus terminus, community and government facilities and public leisure areas.
To add sweeteners to attract property developers, the URA took the unprecedented step of subsidising the project to the tune of HK$1.7 billion. The money will be used to build the podium levels for public services.
The URA is a product of the Tung Chee-hwa era. Its predecessor - the Land Development Corporation (LDC) - was known for demolishing old buildings for redevelopment. It had the power to work independently with property developers, leaving it open to accusations of transferring benefits to big businesses.