Government unveils Bonus Plot Ratio Scheme to revive old districts

The pilot scheme will cover a period of five years, starting 1 September.

The government has issued a Joint Practice Note detailing the requirements and arrangements of the Bonus Plot Ratio Pilot Scheme to promote redevelopment in old districts.

Secretary for Development Bernadette Linn said the pilot scheme will be implemented in Cheung Sha Wan, Ma Tau Kok, Mong Kok, Sai Ying Pun and Sheung Wan, Tsuen Wan, Wan Chai, and Yau Ma Tei.

Private redevelopment sites in the said districts can obtain an additional 20% plot ratio to enhance the financial viability of redevelopment projects.

“The ultimate aim is to tackle the issue of ageing buildings at a much faster pace than redevelopment by both the Urban Redevelopment Authority and the private market,” Linn said.

Developers get a 20% bonus in floor space, free of charge, if they redevelop old residential buildings into new homes.

To qualify, the building must be in one of the seven old districts, be at least 50 years old, and the site must be at least 700 square metres.

Moreover, instead of using the 20% bonus floor space at the redevelopment site itself, developers can convert it into a land premium credit.

This credit can offset the premium owed for that same project, or be applied to other land deals in the Northern Metropolis or elsewhere in Hong Kong.

The pilot scheme will cover a period of five years, starting 1 September and ending 31 August 2031.