Rules issued to prevent developers from circumventing policy ahead of 2011

The Hong Kong government has issued new guidelines preventing developers from circumventing new rules to control "inflated buildings", responding to concerns that some developers may rush to submit project applications in a bid to beat the April 2011 deadline. There were also fears that unscrupulous firms could make a claim even before acquiring a site.

But under the guidelines promulgated by the Building Authority Wednesday and effective today, a developer can only file a building project application if it actually owns or controls the site. Exemptions gained previously for developers from calculating the gross floor area will also expire if the building works fail to commence within two years.

"These guidelines provide clearer norms for relevant departments to adopt in the next few months, which also clear up doubts from the public that some people do not fully understand how these new measures actually work," Carrie Lam, secretary for development, told reporters Wednesday.

The guidelines serve to clarify Chief Executive Donald Tsang's new measures announced in his Policy Address last week to end the city's worsening "inflated buildings" problem. It will impose a cap amounting to 10 percent of total floor space on green features and amenities that are permitted to be factored in when determining the size of individual apartments.

Lam said that the new policy will not be able to be enforced until next April as it requires a lot of work.

As for approved residential buildings that have yet to be built and are in breach of the new rules, Lam said the permits will still stand since the government generally does not have the powers to review them.

Environmental group Green Sense had earlier called on the government to make changes to the residential projects that it was going to build in conjunction with MTR Corp.

The group claims that six residential projects to be built above three West Rail stations and one light-rail station will have large car parks, clubhouses and shopping malls, which take up as many as seven levels and have violated the new rules.

"The approved plans will still be valid, but if they need re-approval or make a large number of amendments for various reasons in the future, we will start over in accordance with the new policy," Lam added.

Buggle Lau, chief analyst at Midland Realty told China Daily the measures dealing with "inflated buildings" and the new guidelines would not fundamentally threaten the interests of developers.

"But the developers will definitely be more selective when choosing a land bank, and more cautious when offering a price," Lau said.

China Daily

(HK Edition 10/21/2010 page2)