2024-04-24 28Hse Editor
Details for the first phase of four have been announced, with a total of 17,000 flats and a 5-year operating expenditure/expenses of about HK$2.5 billion.
The Housing Bureau submitted a document to the Legislative Council on Monday, providing new information on the ‘light public housing’ scheme such as the costs, and expected construction and completion dates of the scheme’s first phase.
Among them, the largest project, located on Olympic Avenue in Kai Tak, will have a construction and engineering budget of HK$9.5 billion. Construction will begin as soon as the first quarter of next year, with the first phase to be completed in the first quarter of 2026.
Government sources emphasized that though it will only take a short time to find land, build and provide 30,000 ‘light public housing’ units, they will ensure that the construction quality meets housing standards.
In response to critics of the Olympic Avenue project, sources say though the site selection is already the most ideal site for the ‘light public housing’ project in the neighboring area, the opinions of the district will continue to be consulted. The Housing Bureau estimates the total five-year operating expenditure for the first phase of 17,000 temporary public housing flats to be about HK$2.5 billion. ◆ Nie Xiaohui,
The Housing Bureau will file for a funding request of HK$14.91 billion from the Finance Committee of the Legislative Council. The funds would go toward construction of the first phase projects and pre-construction process for the remaining 4 projects, which will create about 2,700 jobs accordingly.
The document noted that after approval of funding, the construction contract of the project will be carried out in strict accordance with the government's established procedures and regulations. The Housing Bureau will also regularly report to the Legislative Council on the financial and operational progress of each project. Within the first phase of the scheme, the Yau Pok Road project in Yuen Long, which can provide about 2,100 flats, is expected to be completed in the first quarter of 2025 at the earliest.
According to the document, it is estimated that the first phase of projects will generate a total of about 168,000 tonnes of waste, of which 8.2% inert construction waste will be reused at the construction site, and about 74.5% of the inert construction waste will be transported to public fill reception facilities for future reuse. The remaining 29,000 metric tons (17.3%) of non-inert construction waste will be disposed of in landfills, and the related transportation and disposal costs will be about HK$14.7 million.
Looking at transitional housing to determine operating expenses
The cost of the ‘light public housing’ project has drawn much attention. The Secretary of the Housing Bureau, Winnie Ho Wing-yin, recently noted that following the latest estimate by the Architectural Services Department, the total design and construction costs of all 8 projects could be reduced from about HK$26.79 billion to HK$25.99 billion. The estimated cost of infrastructure works has also been reduced from about HK$600 million to about HK$450 million.
The document further explained that the cost reduction could be reduced mainly because the site and foundation-engineering scheme could be further optimized. For example, renewable energy facilities would be eliminated and only energy-saving devices would be provided. In addition, the equipment provided in flats would be reduced.
For example, under the latest estimates, air conditioners will no longer be provided in flats. However, according to sources, two air conditioners were originally provided to large units. This would mean a total of 39,000 air conditioners – each valued at about HK$5,100 – in 30,000 units. Therefore, about HK$200 million was saved.
Government sources also stressed that the cost of each unit cannot be calculated simply by dividing the construction cost of the project by the number of units: “Generally, public works projects must exclude external factors, such as the cost of supporting facilities costs and so on.”
As for the total budget of HK$2.5 billion for the first four projects over a five-year period, sources said that it is based on the management, maintenance and provision of community services for the current “transitional housing” projects of non-governmental organizations. The Housing Bureau will communicate with various stakeholders on the project operation arrangements and formulate detailed rules. Details will be announced in due course.
Government: Long-term land use remains unchanged
Sze Lai-shan, deputy director of the Society for Community Organization (SoCO) with experience in operating transitional housing projects, told yesterday that the operating costs of the project are indeed steep. “It is not difficult to provide community services, but our project has more than 300 people in 40 households. The management fee already costs more than HK$100,000, not including the cost of maintenance.”
Regarding criticisms of the site selection of the Kai Tak project, a source responded that they valued the opinions of stakeholders, stressing that the long-term use of the site will remain unchanged, and will not delay the original development schedule. The source also described the site as the most ideal in the district, located more than 140 meters away from the existing residential areas, south of Kai Tak Station Plaza and west of the Lung Tsun Stone Bridge in the west.
As to whether the Kai Tak project will cause the New Territories project to be neglected by potential tenants, a source described it as a personal choice, saying, “The rent in the New Territories is relatively affordable.” However, if a “light public housing” tenant refuses three times the opportunity to be allocated a conventional public housing unit under the current mechanism, he or she will have to move out of the “light public housing” within a reasonable period of time, and will not be given the opportunity to “move up” again.
‘Light Public Housing’ project details
Yau Pok Road, Yuen Long (vacant)
Supporting facilities area: 860 square meters
Estimated number of units: ~2,100
To be implemented by private developers
■ 2023 Q4
◆2025 Q1
Land area: 8.9 ha
Project cost: HK$1.64 billion
Tuen Mun Area 3A (Vacant)
Supporting facilities area: 300 square meters
Estimated number of units: ~1,900
District Health Center and Indoor Sports Complex
■ 2023 Q4
◆2025 Q4
Land area: 0.8 hectares
Project cost: HK$1.66 billion
Choi Hung Road, Ngau Tau Kok (Government department construction site/temporary car park/storage use)
Supporting facilities area: 370 square meters
Estimated number of units: ~2,300
School and service reservoir
■ 2023 Q4
◆Phase 1: 2025 Q2
Land area: 1.1 ha
Project cost: HK$1.94 billion
Kai Tak Olympic Avenue (Government department construction site/temporary car park/storage use)
Supporting facilities area: 1,720 square meters
Estimated number of units: ~10,700
●Commercial and open space
■ 2024 Q1
◆Phase 1: 2026 Q1
Land area: 5.7 ha
Project cost: HK$9.5 billion
Lian Tong Mei, Sheung Shui (horticulture/idle)
●To be implemented by private developers
■2024 Q2
◆2025 Q2
Land area: 2.8 ha
Project cost: to be determined
Supporting facilities area: 420 square meters
Tuen Mun Area 54 (Government department construction site/land formation in progress)
●Schools and gymnasiums
■Phase 1: 2024 Q2
◆Phase 1: 2026 Q3
Land area: 2.6 ha
Project cost: to be determined
Supporting facilities area: 2,140 square meters
Estimated number of units: ~5,300
Sheung On Street/Sheung Ping Street, Chai Wan (temporary car park)
●open space
■2024 Q2
◆2026 Q2
Land area: 0.9 ha
Project cost: to be determined
Supporting facilities area: 250 square meters
Estimated number of units: ~1,600
Siu Lam Fun Arrangement (Idle/Government Department Construction Site/Temporary Parking Lot/Storage Use)
●Comprehensive development area and open space
■2024 Q2
◆Phase 1: 2026 Q3
Land area: 3.8 ha
Project cost: to be determined
Supporting facilities area: 2,000 square meters
Estimated number of units: ~5,000
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