Time to double down on slashing red tape to spur development in Hong Kong
The last thing Hong Kong needs is visionary ideas held back by short-sighted bureaucracy
Hong Kong land regulations are notoriously rigid and cumbersome, so much so that they may dampen the incentive to develop and even hinder progress. Such bureaucracy does nothing for a modern city with limited land resources but a growing appetite for more megaprojects.
While the authorities recognise the problems and have sought to ease restrictions with piecemeal measures from time to time, the pace of planning and development is often lagging behind.
In yet another step to expedite the process, developers are to be allowed to modify leases and pay a land premium in a so-called “pay for what you build” concept.
Instead of being charged the maximum floor area allowed on the site under the existing arrangement, the premium will be based on the actual development.
Separately, short-term tenancies, under which government land can be leased for fixed terms of up to seven years, also may be granted a longer period to encourage more long-term planning and diversified land uses.
The flexibility is to be welcomed in that it would lower the upfront investment cost and speed up individual development projects. It also encourages different types of land development according to needs.