LOFTER is working on various urban redevelopment projects
LOFTER Group has been actively exploring a variety of opportunities for developing urban renewal projects across core districts of Hong Kong, with key focus on Grade A Commercial and Luxury Residential Projects.
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To use the value created through transit development, the government upzones the site, changes the zoning code from residential to mixed-use, and plans denser development using the assembled land parcels. The development will include a tall building, an underground metro station, and associated public infrastructure (wider roads, public spaces, and amenities). Landowners and tenants are entitled to keep the property rights of floor spaces in the new building that are valued as equal to their original property.
Urban renewal is not a ‘slash and burn’ process. Building rehabilitation offers speedy improvement to the living conditions of people in-situ and retains the community network.
In order to tackle urban decay problem more effectively, redevelopment takes more diverse forms. The “demand-led” model is intended to let owners decide collectively if they want the URA to redevelop their properties. As a “facilitator”, the URA provides facilitating services to owners in amalgamating their property interests for joint sale in the market.
A primary purpose of urban renewal is to restore economic viability to a given area by attracting external private and public investment and by encouraging business start-ups and survival. It is controversial for its eventual displacement and destabilization of low-income residents, including African Americans and other marginalized groups.
Urban redevelopment is conceptually similar to land readjustment, with the exception that it happens in existing urban areas and often involves a rezoning by the government of a given area from a low-density (single-family housing) to higher-density (mixed-use or commercial) development.
It is also accompanied by a provision of infrastructure improvements (mass transit, such as metro lines) that can support such up-zoning.
The Housing Society and the Urban Renewal Authority (URA) signed a Memorandum of Understanding (MOU) on 12 December 2002 to enter into a long-term strategic partnership for the implementation of urban renewal projects.
As part of this process, a government assembles the individual private properties and undertakes a new higher development plan and delivers the necessary infrastructure. At the end, the government returns to each landowner a share of the overall new development that is equivalent to their original land or property ownership. It retains a share of the development that it then sells to recover the cost of the infrastructure improvement.