Mainland Chinese developers eye Hong Kong’s ageing residential blocks for redevelopment
As home prices soften, mainland developers have become more active in acquiring old buildings
A wave of mainland Chinese firms have started hunting for old buildings in Hong Kong’s urban areas, in a bid to acquire cheap land for redevelopment in the world’s most expensive property market.
As of October 4, there were 25 applications submitted by developers for compulsory en-bloc sale, according to data from the Lands Tribunal.
The figure is 60 per cent more than the 11 cases in 2016, and 47 per cent higher than 17 cases filed in 2015.
“The surge is partly driven by the entrance of mainland developers,” said Alnwich Chan, executive director and head of valuation and professional services at Knight Frank.
The trigger threshold in the ordinance was relaxed in April 2010 such that developers can force the sale of remaining flats in a building older than 50 years once they had acquired 80 per cent of the units. This was down from the previous 90 per cent threshold.