1. Enhancing Land Supply Strategy:Reclamation outside Victoria Harbour and Rock Cavern Development : 1st Topical Discussion (3 December 2011): Housing and Development - HKs Needs and Opportunities2011123 -

2. Revision made to PowerPoint since the event held on 3 Dec 2011:2011123:P. 21 Reuse of Ex-quarry Sites Information of Lam Tei Quarry is added.Last row of the Table21 2 3. 1. Housing and Development HKs Needs & Opportunities - 2. Existing Land Supply Options 3 4. Needs :1. Population Growth2. Economic Development3. Quality of Life 4 5. Housing and Development Needs Population Growth - By 2039: Population estimated to grow by 25%,reaching 8.9 million number of households increase almostby 30% to 3.1 million during the sameperiod.2039: 25890 3310Population growth 2011 7.1M2030 8.4M2039 8.9MHousehold growth2011 2.4M 2030 2.9M Housing demand2039 3.1M5 6. Housing and Development Needs Economic Development - Economic Development Four Pillar Industries: financial services, trading and logistics, tourism, and professional services have been the drivers of HKs economic growth and jobs creation. Six industries actively promoted by the Government: medical services, environmental industries, testing and certification services, education services, innovation and technology, and cultural and creative industries, also require land for development. To enhance our competitiveness, adequate land should be provided for infrastructure and business use. : : 6 7. Housing and Development Needs Quality of Life - Quality of Life Publics aspiration : lowering building density having more open space conserving the natural environment preserving culture and heritage More vigorous measures (e.g. stepped building heights, building gaps, building set-back) were introduced after the outbreak of SARS to promote better development layout so as to improve airAPP-152 Sustainable Building Design Guidelines Site Coverage of Greenery ventilation. 152 - SARS 8. Residential Urban Density Source:Cities, Health and Well-being Hong Kong Urban Age Conference16-17 November 2011 organised by LSE Cities at the LondonSchool of Economics and the Alfred Herrhausen Society, in8Partnership with the University of Hong Kong 9. Uncertainties in DemandChanging Demand Long-term population forecasts, are bound to be adjustedas social and economic circumstances change, resulting inuncertainties in land demand. Peoples expectation of living quality also changes whensocial and economic circumstances change, adding moreuncertainties to land demand. The fast changing market conditions have also causedconsiderable uncertainties in land demand for economicdevelopment. 9 10. 1. Housing and Development HKs Needs & Opportunities - 2. Existing Land Supply Options 10 11. Existing Land Supply Options Some Existing Land Supply Options: 1. Redevelopment 1. 2. Rezoning Land 2. 3. Reuse of ex-quarry sites3. 4. Land Resumption 4. 5. Reclamation 5. 6. Rock Cavern Development 6. 12. Existing Land Supply Options Redevelopment Government promotes urban renewal and revitalization by (i) setting up an URA to promote urban renewal; and (ii) assisting privateparticipation in reconstruction through regulations.(i) (); (ii) Government financial support to URA includes injection of 10 billions and granting of land for redevelopment. Up to October 2011, URA launched 40 redevelopment projects and 4 conservation and revitalization projects, and taken over 10 previouslystarted redevelopment projects. Among which 13 projects were completed.2011104041013 The government had announced on 24 February 2011 a new Urban Renewal Strategy, URA will continue to directly proposeredevelopment projects, and also as a facilitator in urban renewal and execute the "demand-driven" new redevelopment mode.2011224 According to the approved 2011-12 to 2015-16 Business Programme, URA will carry out 10 redevelopment projects between 2011 to 2016,and promote 1 to 2 "demand-driven" redevelopment projects, and 1 to 2 projects where URA will act as facilitator role.2011-122015-16201120165 101212 13. Existing Land Supply Options Redevelopment URA implements redevelopment through Development Scheme or Development Projects. Depending on the Development Scheme orDevelopment Projects (Development Scheme involves rezoning of land and will require longer time than Development Projects), it normallytakes 16-18 months to complete the redevelopment project planning process, coupled with acquisition and land resumption time (about 36months), the project construction time (about 30 to 40 months), the whole project will take on average seven to eight years to complete,before it is put on the market for sale.()1618(36)(3040)78 In the next five years, the 16 tendered urban renewal projects will supply 5,337 units, of which about 3,315 are small and medium units.Next year, URA will invite tender for 5 redevelopment projects, providing a total of 1,500 residential units, of which about 900 are small andmedium units.5165,3373,315151,500900 14. Existing Land Supply Options Redevelopment To assist private redevelopment, the Land (Compulsory Sale for Redevelopment) (Specification of Lower Percentage) Notice effective on 1st April2010 stated that the threshold for compulsory sale application is reduced from 90% to 80% of property rights for the following three types ofland lots: Each unit of building within the lot occupies >10% of the lot; Buildings aged 50 years or more; and In rezoned area for non-industrial uses and all buildings within the lot are industrial buildings aged 30 years or more. 201041()()()- 10% 50 30Up to 31 Oct 2011, , Lands Tribunal had received a total of 126 compulsory sale applications: 31 applications were accepted with compulsory sale order issued; 1 application was rejected; 52 applications were put on hold or withdrawn; and 42 applications are in progress20111031126 31 1 52 42 15. Existing Land Supply Options Redevelopment From April 2009 to March 2010 the number of applications for compulsory sale is 7, and from April 2010 to March 2011the number of applications is 32. But to obtain land for redevelopment by this option is market-driven, so the number ofcases will be determined by the market.20094201037201042011332 61 applications for compulsory sale were received from 2010 to 31 October 2011. As of 31 October 2011, for theaccepted applications for compulsory sale, 28 cases have been successfully auctioned.201020111031612011103128 Before Kung Tong Redevelopment Tsuen Wan Redevelopment 16. Existing Land Supply Options Redevelopment Name of the UrbanSite Area (Sq.m)Existing GFA (sq.m) Project Developable GFA Renewal Projects (sq.m) Kwun Tong Town 53,50096,104 401,250 Centre Lee Tung Street and8,236 36,53479,837 McGregor Street Tsuen Wan Town 20,30056,851 134,185 Centre Argyle Street/Shanghai 11,97640,810 167,414 Street (Langham Place) () Kennedy Town New 6,075 24,80862,904 Praya (The Merton) ()Source: Urban Renewal Authority : 17. Existing Land Supply Options Redevelopment Key limitation / Challenge: market driven, unpredictable supply / : Private owners and developers take the leading role. Comparing with other optionsimplemented by the Government, it is less predictable. 17 18. Existing Land Supply Options Rezoning Land In the past 10 years, Town Planning Board had rezoned about 394 hectares of land originally zoned as green belt,agricultural land, conservation area, open space, industrial land and government, institution or community , tocommercial, residential and village house development. It involves 136 amendments of OZP and gazetting.10394 136 However, rezoning is subject to the statutory planning process. Rezoned land may involve in private property rights, theactual development depends on market conditions, and is difficult to control the development time.Rezoning of Industrial Land since January 2001 (as at May 2010) Location I to OU(B) I to Other Uses Remaining I Zone(hectares) (hectares)(hectares) Metro Areas171.22 43.06 109.2 New Territories 24.66 15.33 188.04 Total195.88 58.39 297.24 Source: Report on Area Assessments 2009 of Industrial Land in the Territory 19. Existing Land Supply OptionsRezoning Land Policy Address(i)To release about 60 hectares of industrial land for non-industrial uses, half of which will be made available for housing;() (ii)To look into the use of green belt areas in the New Territoriesthat are devegetated, deserted or formed, thus no longer performing ()their original functions, and convert them into housing sites. Thefirst phase will cover an area of 50 hectares, mainly consisting ofgovernment land; (iii) To examine Government, Institution or Community sites()to avoid the under-utilisation of sites long reserved but without specific development plans; and study ways to reduce therestrictions posed by government utilities to the development ofadjacent areas; and()(iv) To explore the possibility of converting into housing land some 150 hectares of agricultural land in North District and YuenLong currently used mainly for industrial purposes or temporarystorage, or which is deserted.19 20. Existing Land Supply OptionsRezoning Land Key limitation / challenge: market driven, unpredictable supply / :Involving private owners and developers, or different Government departments, it requires alonger process. Actual development hinges on market response. Timing of development is lesspredictable. 21. Existing Land Supply Options Reuse of Ex-quarry sites Name of Quarry SitesQuarry Site Area (ha) Potential Land Use(s) () Cha Kwo Ling Ex-Kaoline Mine Site14 Housing, etc. Shek O Quarry 45 Green areas Lamma Island Quarry49 Housing, etc. Anderson Road Quarry 86 Residential, amenity, greenbelt, etc.Lam Tei Quarry 30 Subject to studies 22. Existing Land Supply Options Reuse of Ex-quarry sites Key limitation / challenge: Limited supply / :This type of land supply is limited, and can only be available upon quarry closure. 23. Existing Land Supply Options Land Resumption 24. Existing Land Supply Options Land Resumption Key Limitation / Challenge for: Local Disruption / : It will cause local resentment if residents wish to maintain their rural lifestyle or are notsatisfied with compensation or re-housing arrangement. The land acquired can only be used for designated purposes, resulting in low flexibility inland use. 25. Existing Land Supply Options Rock Cavern Development 26. Existing Land Supply OptionsRock Cavern Development Strategic Cavern Sites 27. Existing Land Supply OptionsRock Cavern Development Sha Tin Tuen Mun(Shet Mun) (Lam Tei)Lion Rock Lantau (Siu HoWan) Mount DavisStrategic Cavern Areas 28. Existing Land Supply Options Rock Cavern Development Key Limitation / Challenge: Public Perception / : As the public may not readily accept daily activities inside cavern, this option may not beapplicable to many uses. 28 29. Existing Land Supply Options Reclamation Source: Harbour Business ForumSignificant decline in reclamation since enactmentof the Protection of the Harbour Ordinance, fromabout 500 to 700 hectares every five years to 84hectares in 2005 to 2009. 500 7002005200984 30. Existing Land Supply Options Reclamation 30Source: Lands Department 31. Existing Land Supply Options Reclamation Key Limitation / Challenge for RECLAMATION : Environmental Issues / :Emphasis is to be placed on reducing and mitigating impact on marine ecology. 32. Land Supply by Different Options in the Past Decade 33. Existing Land Supply OptionsDistribution of new population under the PreferredDevelopment Option (from HK2030 Study)2030However, challenges in land development in the last few years have hindered therealization of this targets. 34. Existing Land Supply Options In response to citizens demand, planned population needs to bereduced as follows (as of May 2011):Major Projects Planned PopulationPlanned Housing SupplyOriginalNow Original NowKai Tak 320 00086 000 120 00030 600Tung Chung334 000 220 000TBCTBCTKO Further Development 132 00098 46045 27036 140Three-in-One NDA180 000 130 00072 00051 000Hung Shui Kiu NDA 160 000 To be planned61 000To be planned(20115) 320 000 86 000120 000 30 600334 000220 000 132 00098 46045 27036 140 180 000 130 00072 00051 000 160 00061 000 35. Existing Land Supply OptionsThe government will continue to supply land by all these existing options for nowand for the future .Among these six existing options, Reclamation have been overlooked in the pastfew years, and Rock Cavern Development are relatively new to the society, thusworth particular discussion. 36. Policy on Land Development and AccumulationPolicy Address(i) To release about 60 hectares of industrial land for non-industrial uses, half of which will be made available for housing;(ii)To explore the option of reclamation on an appropriate scaleoutside Victoria Harbour;(iii) To actively explore the use of rock caverns to reprovisionexisting public facilities and release such sites for housing and other () uses; (iv)To look into the use of green belt areas in the New Territories () that are devegetated, deserted or formed, thus no longer performing () their original functions, and convert them into housing sites. Thefirst phase will cover an area of 50 hectares, mainly consisting of () government land;(v) To examine Government, Institution or Community sites to avoid the under-utilisation of sites long reserved but without () specific development plans; and study ways to reduce therestrictions posed by government utilities to the development ofadjacent areas; and () (vi)To explore the possibility of converting into housing landsome 150 hectares of agricultural land in North District and YuenLong currently used mainly for industrial purposes or temporary storage, or which is deserted.Our aim is to ensure an annual supply of land for an average of about 40 000 residential units of various types. Even when demandfor land declines, land development will continue. The newlydeveloped land will be kept in the Governments land reserve andmade available when appropriate. By doing so, we will be able tosupply sufficient land for more than 40 000 units each year whendemand rises. 37. Policy on Land Development and Accumulation(i)To release about 60 hectares ofIndustrial land for non-industrial uses, halfof which will be made available for housing;()Rezoning of Industrial Land since January 2001 (as at May 2010)LocationI to OU(B) I to Other Uses Remaining I Zone(hectares) (hectares)(hectares)Metro Areas171.22 43.06109.2New Territories24.6615.33 188.04Total195.88 58.39 297.24Source: Report on Area Assessments 2009 of Industrial Land in the Territory 38. Policy on Land Development and Accumulation(ii) To explore the option of reclamationon an appropriate scale outside VictoriaHarbour;() / Previously Considered Reclamation Sites 27 / /Previously considered site(/) () 39. Policy on Land Development and Accumulation (iii)To actively explore the use of rock caverns to reprovision existing public facilities and release such sites for housing and other uses; () Strategic Cavern AreasSha TinStrategic Cavern SitesTuen Mun(Lam Tei) (Shet Mun)Lion RockLantau (Siu Ho Wan) MountDavis 40. Policy on Land Development and Accumulation (iv)To look into the use of green belt areas in the New Territories that are devegetated, deserted or formed, thus no longer performing their original functions, and convert them into housing sites. The first phase will cover an area of 50 hectares, mainly consisting of government land; () 41. Policy on Land Development and Accumulation (v) To examine Government, Institution or Community sites to avoid the under-utilisation of sites long reserved but without specific development plans; and study ways to reduce the restrictions posed by government utilities to the development of adjacent areas; and () 42. Policy on Land Development and Accumulation (vi)To explore the possibility of converting into housing land some 150 hectares of agricultural land in North District and Yuen Long currently used mainly for industrial purposes or temporary storage, or which is deserted.() 43. Housing and Development Needs Social Needs - There is not merely a blanket reduction of development intensity. There are also cases of increase.Example is the relaxation of development intensity upon relocation of the Kai Tak Airport. TheKowloon Density Study Review considered that there may be scope for selective relaxation of plotratios in large-scale urban restructuring schemes in western parts of Kowloon provided that thesewerage treatment facilities / network would be upgraded accordingly. The relevant statutoryplans were subsequently amended to relax the plot ratio control. / 43 44. Housing and Development Opportunities Flexible and resilient mix of land supply options can effectively respond tofuture challenges and opportunities in relation to limitations in landdevelopment and the changing demand in land resources. 44 45. Thank You 45