Urban Renewal Authority must not lose sight of expectations
The record acquisition price for an urban renewal project raises questions about whether the redevelopment is being done in the public or commercial interest
Urban renewal plays an important role in modern development. It breathes new life into decaying districts, ensures better use of space according to changing needs and helps preserve heritage and city character.
In Hong Kong, the term has a somewhat different meaning, though. It evokes images of luxurious residential blocks or high-end shopping malls rather than open space and community facilities for public enjoyment.
Concerns were raised after the Urban Renewal Authority (URA) offered a record-high acquisition price for a redevelopment project in Sai Ying Pun.
With a per-square-foot price of HK$23,568, an owner of an almost 60-year-old, 500 sq ft flat is to receive compensation of about HK$12 million. The prices of the new residential units are estimated to be even higher, raising questions about whether the redevelopment is being done in the public or commercial interest.
Riding a two-year continuous rising trend in the world’s least affordable property market, the record offer is a reflection of the sorry state of affairs. The Sai Ying Pun project is located in a prime area in the western part of Hong Kong Island, where property prices have been soaring since the extension of the MTR’s Island Line.
