The possible forced closure of a half-century-old noodle factory in Sham Shui Po has reignited public debate over the controversial rules for compulsory land resumption to make way for urban redevelopment.
The owners of the Leung Faat Noodle Factory face the prospect of mandatory surrender of their property as the developer, the Lai Sun Group, successfully applied for compulsory land resumption under new legislative amendments that make it easier for private developers to demolish old buildings for redevelopment.
Founded in 1954, the factory first operated in Canton Road and moved to the current address in Ki Lung Street 36 years ago. The ground-floor shop has a floor area of 1,050 sq ft, which is 14 per cent of the building's total ownership.
The factory is the latest victim of amendments to the Land (Compulsory Sale for Redevelopment) Ordinance, passed in April, that allow developers to force the sale of the remaining units in a building once they have acquired 80 per cent ownership. The previous threshold was 90 per cent.
The Lai Sun Group is offering the owners HK$8 million in compensation, down from HK$10 million before the new rules were introduced. That comes to about HK$7,620 per square foot, far below the average price of HK$10,000 per square foot in the district.
No wonder the family has refused to budge and complained that the compensation is not enough for them to buy a similar unit in the neighbourhood. To be fair, no one can deny that urban redevelopment is a necessity because it provides an answer to urban decline. Renewal has had its successes and failures, but it is a significant step for a city's long-term development.
Redevelopment or gentrification can bring countless benefits to the community in terms of building safety, community hygiene and the quality of life. There are also ecological, social and economic benefits. In principle, urban redevelopment is a good policy as long as the negative impact on residents is kept to a minimum. The lowering of the compulsory sale threshold is a reasonable way to clear barriers.