Thank you, President. I would like to express my support for the Land (Compulsory Sale for Redevelopment) (Amendment) Bill 2023 (“the Bill”). The Bill seeks to refine the existing compulsory sale regime for old buildings by proposing that the thresholds for compulsory sale applications in respect of private buildings aged 50 years or above in designated areas be lowered from the existing 80% to 70% or 65%, where the older the building, the lower the threshold; and that the proposed thresholds for buildings aged 50 to 69 years in designated areas be set at lower levels than those in non-designated areas.
The Bill is mainly targeted at old and dilapidated buildings, which pose a certain degree of safety hazards. The substantial costs of repairing such buildings mean that it is not cost-effective to do so. Redevelopment is therefore a more practical option. The key measures under the Bill have four main directions, namely lowering the thresholds for compulsory sale, facilitating compulsory sale applications for adjoining lots, streamlining the legal process of the compulsory sale regime and strengthening support for minority owners affected by compulsory sale.
There are views that the threshold for compulsory sale applications in non-designated areas, particularly in respect of private buildings aged 60 to 69 years, should remain at 80% so that resources for redevelopment can be channelled to designated areas with a high concentration of old buildings. As a matter of fact, designated areas have more pressing need for redevelopment having regard to the proportions of buildings aged 50 years or above (50%) and buildings having been issued with notices under the Mandatory Building Inspection Scheme (38%). However, some buildings in non-designated areas may be seriously dilapidated due to poor maintenance, and their conditions are inferior to newer buildings. It is therefore appropriate to lower the thresholds for compulsory sale applications progressively according to the age of the buildings, regardless of whether they are in designated areas or non-designated areas.
The implementation of the Bill is primarily intended to align with the Government’s objective of expediting urban renewal. Some members of the public may worry whether the building they are living in will be subject to compulsory sale by the Government if it is 50 years old or above. In fact, redevelopment is not a must for aged buildings. The Lands Tribunal plays an important gate-keeping role in handling each compulsory sale application and safeguarding the interests of all owners. Apart from the age of the buildings, the state of repair is also a factor in determining whether redevelopment of a lot is justified. If the buildings concerned are well maintained and still habitable, the Lands Tribunal will not grant an order for sale as long as there is no actual need for redevelopment. There should be no cause for concern to the public.
President, I so submit.