ebulletin

September 23, 2025
Cross-District Plot Ratio Transfer Policy to accelerate urban redevelopment
(HONG KONG) In its latest Policy Address, the Hong Kong government announced a pilot scheme to implement “Cross-District Plot Ratio Transfer” in seven designated urban areas. The initiative aims to incentivize private redevelopment and optimize land resource allocation. Key highlights for building professionals are as follows:

Plot ratio enhancement and transfer mechanism
Property owners undertaking private redevelopment in the designated districts may be granted a moderate increase in plot ratio. The additional floor area can be:

Applied to the original redevelopment site;
Transferred to other sites, including those in the Northern Metropolis;
Monetized based on prevailing market value and used to offset land premiums (e.g., for land tendering, lease modifications, or land exchange).

Ledger-based premium offset
The government will record the monetized value of the transferred plot ratio in a ledger system. When the owner engages in future land-related transactions, the recorded value can be deducted from the payable land premium.

Redevelopment plans in progress
Secretary for Housing Winnie Ho stated that the Housing Authority will announce redevelopment plans for Ma Tau Wai Estate and Sai Wan Estate within the year. The government is also studying the feasibility of redeveloping Model Housing Estate, given its aging buildings and rising maintenance costs.

Implications for developers
Greater development flexibility

Developers can benefit from increased buildable area in aging urban zones.
The additional plot ratio can be retained, transferred, or monetized—offering strategic options across portfolios.

Strengthened financial incentives

Monetized plot ratio can be used to offset future land premiums, easing upfront financial burdens.
Particularly beneficial for sites with fragmented ownership or high land costs.

Optimized land use strategy

Developers can reallocate development rights based on market demand and planning constraints.
The policy encourages redevelopment in densely built, aging districts by enhancing economic viability.

Administrative considerations

Developers must manage ledger entries and coordinate deductions across projects.
Transferred plot ratios must comply with planning and lease conditions of the receiving site, requiring careful administrative planning.

This policy effectively transforms plot ratio into a flexible, tradable asset—unlocking new possibilities for urban renewal and strategic land deployment. (Reported by Building.hk)