Public consultation | Shop owners might not receive replacement units under urban renewal plan

Commercial property owners may not receive replacement units when their existing property is forced to be redeveloped under the government’s future Urban Renewal Plan, according to director of the Labour Affairs Bureau (DSAL).
The public consultation process of the government’s Urban Renewal Plan draft was held at the Legislative Assembly yesterday, with lawmakers present as well. Concerns over commercial property, underground spaces, community development and other issues were voiced by the lawmakers.
The recent announcement of the public consultation draft surprised the public, as it was announced suddenly by the Secretary for Administration and Justice, Sonia Chan, instead of being proposed by the Secretariat for Transport and Public Works, headed by Raimundo do Rosário.
Lawmaker Au Kam San pointed out that the proposal does not clearly state whether the owner of a commercial property can obtain a new commercial property after the redevelopment, and that the proposal only suggests two types of compensation for owners of commercial property.
“Shops can only be exchanged for cash or subsidies but can’t be exchanged for another shop?” Au asked.
DSAL director Liu Dexue said that although it was not written in the proposal, the government’s general direction still leans towards giving property owners a new property whose purpose remains the same. For example, property owners can obtain new offices if their old property was an office. The same goes for shops.
However, according to Liu’s response, there is still the possibility that shop owners may not be given shops once the government tears down their properties.
“Only when there are no equivalent properties, will we consider compensating them with cash,” said Liu.
Liu gave the example of industrial buildings. “If an industrial building is demolished and there is not an equivalent building to compensate [property owners], then we will consider authorizing cash compensation.”
Chui Sai Cheong asked whether underground spaces may also be developed.
Lawmaker Zheng Anting noticed that the proposal uses the term “within the plan” and asked the government about handling buildings which need redevelopment and yet are excluded from the plan.
Sulu Sou, who represents those living in old areas, voiced his concerns about the redevelopment of the community, instead of increasing the population of said community.
Overall, several lawmakers, including Ella Lei, focused on the percentage of agreement of property owners required to demolish a building for redevelopment.
In 2017, the government made a proposal which suggested a certain percent agreement with property owners that had to be reached before rebuilding a building. However, the new proposal has cut that percentage.
Lawmakers mainly worry that fewer property owners will be protected following the reduction, as the government will only need to reach an agreement with a small number of property owners in order to demolish a building.
Government representatives once again argued that a mechanism involving procedures for arbitration, lawsuits and a final acquisition method may need to be implemented for any disagreeing parties.
During the consultation, Liu repeatedly affirmed that the government wishes to balance the benefits to all property owners, and that the redeveloped buildings will be equipped with more modern facilities.