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com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper 1/26/2008 9:53 AM

Legco against easing of building sale restrictions

Olga Wong
Updated on Jan 23, 2008
A revised proposal to make it easier for developers to seek the forced
sale of a building where a few owners are holding out was still opposed
yesterday by lawmakers, who feared the relaxation would encourage
the demolition of old buildings that remained structurally safe.

The government wants to lower the threshold for a forced sale from 90
per cent of owners in agreement to 80 per cent in some circumstances.

It had earlier proposed this should apply in three situations - smaller

buildings where a single holdout represented 10 per cent or more of the
shares; buildings aged 40 years or older; and those with missing or
untraceable owners who accounted for at least 10 per cent of the
shares. The third provision was removed from the revised proposal
because the government said redeveloping the flats of missing owners
might infringe private property rights.

The government said lowering the threshold in the first situation would
facilitate private redevelopment of buildings with five to nine flats where
a deadlock could develop when one owner refused to sell.

The change was made after a three-month consultation launched last

year. A public hearing at which owners and developers will be able to
express their views to lawmakers on the revised proposal will be held
later this month.

The government said earlier that any amendment to the law would
incorporate public views, but no timetable has been set.

Under the Land Ordinance, any person who owns not less than 90 per
cent of the total undivided shares of a lot may apply to the Lands
Tribunal for an order of compulsory sale of the whole lot.

Yesterday lawmakers asked for stronger justification for the lower

threshold. Albert Chan Wai-yip, who proposed the 90 per cent threshold
in the 1990s, said further lowering it would speed up the acquisition of
old buildings and eventually eliminate characteristics of old districts.

Legislator Raymond Ho Chung-tai, representing the engineering sector,

said he was unconvinced by the new proposal because buildings 40

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SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper 1/26/2008 9:53 AM

years or older were still structurally safe.

Records show more than 20,000 private buildings have nine flats or
fewer and there are 9,000 buildings 40 years old or more.

Permanent Secretary for Development Raymond Young Lap-moon said

the new proposal struck a balance between improving the living
environment of old buildings and protecting private property rights.

He said the Lands Tribunal would issue an order of compulsory sale to

developers in accordance with the age and condition of the buildings.

He said the tribunal, in one case, did not issue the order although the
building had reached the criteria of 40 years old because the building
was still well maintained.

Miriam Lau Kin-yee of the Liberal Party said the government should
issue detailed guidelines that specified conditions under which the
order should be issued.

"It will help the tribunal to make a fair judgment instead of relying on the
individual decision of judges."

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