Developers clear hurdle over old properties
The government has ruled out excluding structurally safe buildings from a proposed redevelopment law that will make it easier for private developers to acquire old buildings.
The new law, set to take effect in April if approved by lawmakers, will allow a developer to force the sale of remaining properties in residential blocks that are 50 years or older, once they have acquired 80 per cent. The existing law sets the threshold at 90 per cent.
Lawmakers suggested earlier this week that the law should cover only buildings considered dangerous, with a repair order issued by the Buildings Department. Owners then would be under less pressure to sell their properties if their flats were well maintained.
But Deputy Secretary for Development Tommy Yuen Man-chung said a 'dangerous building' with a repair order could be one with a loose window that could fall off and harm passers-by, so this would not be a helpful reference for the redevelopment law.
The government has also rejected other suggestions by lawmakers to introduce a 'flat-for-flat' or 'shop-for-shop' option into the law to give minority owners more protection, and to conduct a dedicated consultation with owners of the 2,582 buildings which will be affected by the new law.
Of these buildings, 755 are in Kowloon City, 445 in Yau Ma Tei, 430 in Sham Shui Po and 336 in Wan Chai. 'We do not consider it appropriate for the government to mandate any form of collaboration in respect of sale of properties between private owners,' the Development Bureau said in a paper to the Legislative Council, rejecting the 'flat-for-flat' option. The bill was tabled in Legco last month.
In the wake of last month's fatal building collapse in To Kwa Wan, industry representatives want more inspections and say that current proposals do not do enough to ensure building safety.
The Royal Institution of Chartered Surveyors (RICS) in the city is promoting the 'best practice' of building inspections before each sale and lease of property, which is common in Britain where the practice dates back to 1927.
At present, most building inspections are triggered by complaints or safety concerns.
Lawmakers are considering legislation that would require owners of blocks 30 years or older to inspect their buildings every 10 years, but the RICS says this is not enough to ensure safety.
'It's not just about buildings falling down, it's about identifying problems for prevention,' David Faulkner, chairman of the RICS in Hong Kong, said.
In Britain, the practice has been enforced not by the government, but by the private sector.
Banks will not issue a mortgage until the building to be sold is inspected, Faulkner said.
The Development Bureau said it would study the surveyors' proposal.
Old buildings
The number of residential buildings 50 years or older in Hong Kong: 2,582
