In view of the scale and pace of urban decay, both the public sector and the private sector in Hong Kong have been carrying out urban renewal. For the former, the Urban Renewal Authority (“URA”) has been carrying out redevelopment projects and rehabilitation works to help arrest urban decay. To encourage private sector participation in urban renewal, the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545) (“LCSRO”) was enacted and came into operation in June 1999 to facilitate owners of buildings in multiple ownership to redevelop their lots. Under the LCSRO, a person (or persons) who own(s) a specified majority of the undivided shares in a lot may make an application to the Lands Tribunal for an order for the sale of the whole lot for redevelopment.
Currently, there are provisions under the LCSRO protecting the rights of the minority owners in various aspects at different stages of compulsory sale applications. Moreover, the Government has been engaging a non-governmental organisation (“NGO”) by way of tender to provide outreaching support services since January 2011. In addition to organising talks, workshops and roadshows from time to time to explain to members of the public the general procedure for property acquisition and the legal procedure under the LCSRO, the NGO provides consultation service and counselling support for minority owners and their immediate family members affected by compulsory sale applications.
In order to make good use of private market efforts to expedite urban renewal, provide a way out for minority owners of old and dilapidated buildings, address safety hazards of buildings and improve the living environment of residents, the Government, after extensive consultation, introduced a bill into the Legislative Council in December 2023, proposing to expedite the consolidation of property interests in four directions, namely lowering the threshold for applying compulsory sale; facilitating the application for compulsory sale of adjoining lots; streamlining the legal process for compulsory sale; and enhancing support for the affected minority owners. The bill has been passed by the Legislative Council on 18 July 2024, which has become the Land (Compulsory Sale for Redevelopment) (Amendment) Ordinance 2024 (“Amendment Ordinance”). The Development Bureau ("DEVB") will announce the commencement date of the Amendment Ordinance by gazette notice as soon as possible. According to the negative vetting procedures of the Legislative Council, the new and updated legislation enacted by the Amendment Ordinance will be incorporated into the LCSRO and become effective in mid-December 2024 the earliest.
To strike a balance between expediting the redevelopment of old buildings and protecting the interests of property owners, apart from strengthening the statutory protection for minority owners affected by compulsory sale applications in the Amendment Ordinance, the DEVB has set up in late August 2024 the Dedicated Office of Support Services for Minority Owners under Compulsory Sale (“DOSS”) to co-ordinate and steer the follow-up work after the enactment of the Amendment Ordinance, in particular public education and publicity work. DOSS also commissions and steers the Support Service Centre for Minority Owners under Compulsory Sale (“SMOCS”) to provide more comprehensive and effective support services to minority owners.
The SMOCS was set up by the URA, but its operation is entirely independent of the URA and it is only accountable to the DOSS of the DEVB. The SMOCS has commenced operation on 27 August 2024. Under the steer of the DOSS, the SMOCS strives to provide one-stop, more comprehensive and effective support services to minority owners at different stages of compulsory sale applications. The SMOCS will, in collaboration with the designated NGO and relevant professional organisations, step up publicity and public education at the district level to enhance the understanding of the public, minority owners of old buildings and those affected by compulsory sale applications on private property acquisition activities and the compulsory sale application mechanism. The SMOCS will also provide minority owners affected by compulsory sale applications with services such as preliminary professional advisory service, assistance in mediation, referrals to legal and related professional services, emotional counselling, and assistance for searching alternative accommodation.
Designated Areas
The first batch of Designated Areas as provided in the Amendment Ordinance (which will become effective in mid-December 2024 the earliest) are tabulated below –
Dedicated Office of Support Services for Minority Owners under Compulsory Sale
