Shamshuipo slum clearance to cost $2.58 billion
Housing Society expects $400 million loss on long-awaited redevelopment
Sixty-seven rundown buildings in Shamshuipo are to be demolished as part of a $2.58 billion residential development unveiled by the Housing Society yesterday.
Some residents in the four sites earmarked for redevelopment welcomed the news yesterday, saying the ageing flats are in poor condition, but added they were hopeful of high compensation payments.
The area covers Castle Peak Road, Hing Wah Street, Un Chau Street, Fuk Wing Street and Cheung Wah Street. The authority expects to make a $400 million loss on the project.
The four urban renewal projects will provide 1,000 residential flats, 11,000 square metres of retail space and 2,200 square metres of community facilities by 2010.
The Housing Society, which is in charge of the projects, said 437 properties and 670 households would be affected. The oldest building to be demolished is 51 years old.
'The launch of the four projects - which are in close proximity to each other - at the same time, can speed up urban redevelopment in the district and improve the living environment as a whole,' said Francis Law Hoo-yan, the society's director (property development).
Mr Law said the estimated cost for the four projects was about $2.58 billion, which included $1.27 billion for compensating residents.
But the society expected a loss of $400 million.
'We expect to face some pressure during the acquisition process as property values have been going up [and some residents may hope to get higher compensation],' said Mr Law.
The four renewal schemes are among the seven projects agreed to under a memorandum of understanding between the society and the Urban Renewal Authority two years ago.
Cheung Tak-shing, who has lived in his 1,000 sq ft flat in Fuk Wing Street with his family of six for nearly 40 years, said he was pleased he would be moving to a better flat. He said he had spent $80,000 on repairs to the ceiling, parts of which are collapsing. He said he would be satisfied if the government offered $3 million in compensation.
Mr Cheung, 49, had bought flats in Shamshuipo and other sites marked for redevelopment in the hope of receiving government compensation offers. His plans backfired with the property market's slump and the delay in announcing the Shamshuipo redevelopment. 'The defunct Lands Development Corporation announced in 1997 their plans to redevelop the ageing district. But nothing has been done until now. This flat is still on mortgage and my other flats have already been sold at extremely low prices,' he said.
The society started two redevelopment projects in Shamshuipo and Shau Kei Wan last year.
