A Fond Farewell: Looking Forward to "New Strategy on Building Rehabilitation 2.0”
Time flies. Nine years have passed since I took on the role of Managing Director of the Urban Renewal Authority (URA). Shortly after assuming the role, I began writing blogs, regularly publishing them on Sundays to share updates on the URA’s latest policies and progress, as well as innovative measures and directions beyond press releases or press conferences. A total of 220 blog posts, including this final one, have been published over these nine years.
In my very first blog, I raised questions about the work of the URA – how much effort it should invest and how it could perform its tasks more effectively. I posed these questions because I had long foreseen that relying solely on redevelopment to regenerate old districts would not be sufficient to address the challenges of urban and building ageing. I have always believed that the key to urban renewal is rehabilitation. Therefore, it is necessary to implement diverse rehabilitation strategies for buildings of different ages to extend their lifespan — this is the fundamental way to tackle both urban and building ageing issues.
To this end, I immediately initiated three strategic studies after taking office, including the “New Strategy on Building Rehabilitation” (NSBR) in 2017, which aims to understand the perspectives of property owners and the challenges they face during building maintenance and repairs. This understanding would help us develop targeted measures, such as enhanced promotion, technical support, and financial assistance, to encourage property owners to undertake rehabilitation works. The study’s findings indicated that owners and Owners’ Corporations (OCs) generally encounter three main issues when organising building repair or maintenance works: a lack of knowledge related to building rehabilitation, insufficient financial reserves, and limited organisational capacity.
In response, the URA has invested resources to promote building rehabilitation across three key areas: (1) raising awareness among owners about the importance of rehabilitation and enhance their knowledge, (2) assisting owners in expediting the organisation of rehabilitation projects, and (3) promoting a “preventive maintenance” approach and encourage owners to build financial reserves for future repairs. Since 2016, more than 30 measures have been introduced, including 15 pioneering initiatives.
Despite the significant resources the URA has dedicated over the years to promoting building rehabilitation, these efforts are only administrative tools of promotion and encouragement. Achieving fundamental change still has a long way to go.
In this regard, the URA conceived the launch of the “New Strategy on Building Rehabilitation 2.0” (NSBR 2.0) study last year. This study will not only review and evaluate the effectiveness of the building rehabilitation measures implemented by the URA in recent years but also examine three key aspects: regulatory requirements, institutional arrangements, and the effective use of innovative technology. The NSBR 2.0 study timely responds to the earlier approval by the Chief Executive in Council to grant a site at Bailey Street, Hung Hom, and a site in Tseung Kwan O Area 137, which required the URA to advise how to step up building rehabilitation to extend the service life of aged building and reduce the immediate need for redevelopment.
Conducting the First-ever “New Strategy on Building Rehabilitation” Study in 2017
In 2017, the URA conducted Hong Kong’s first comprehensive “New Strategy on Building Rehabilitation” (NSBR) study. The NSBR study involved surveying around 3,000 building owners across the city through questionnaires and conducting in-depth interviews with approximately 100 owners, property management professionals, scholars, and industry experts to gather insights into their opinions and challenges related to building maintenance and repairs.
The results revealed that owners and OCs of old buildings generally face three major issues when organising rehabilitation projects: a lack of capability and specialised knowledge to set up repair works, as well as insufficient financial reserves, which worsen building dilapidation problems. In response, the URA took a three-pronged approach to promote building rehabilitation and introduced targeted measures:
(1) Enhancing owners’ knowledge of building rehabilitation
The URA launched Hong Kong’s first one-stop “Building Rehabilitation Platform” website in 2019, providing practical information and technical support related to building repairs to enhance owners’ knowledge of organising repair works. The platform also includes details of various subsidy schemes and a Cost Reference Centre that consolidates funding figures from different districts. Since its launch, the platform has attracted over 2.2 million hits, demonstrating its practicality and popularity.
Furthermore, we established Hong Kong’s first “Building Rehabilitation Resource Centre” (BRRC) at eResidence in To Kwa Wan. Officially opened in July 2023, the BRRC offers multimedia resources on building repair information and support, as well as virtual consultation and application services, enabling owners to immediately process subsidy applications for various rehabilitation schemes after obtaining information from the centre. The BRRC also offers activity rooms, meeting rooms, and mediation rooms of various sizes for OCs and individual owners to discuss building maintenance and management matters.
(2) Assisting owners to expedite the organisation of building rehabilitation works
Apart from insufficient knowledge of building rehabilitation, owners and OCs often find the procedures and required documentation involved in tendering projects overwhelming. Some even express concerns about the risk of bid-rigging.
To address this, we launched the Smart Tender Building Rehabilitation Facilitating Services Scheme (Smart Tender) in 2016. This service involves independent professionals providing third-party advice and technical support at various stages to assist owners in selecting suitable contractors for rehabilitation works. This includes reviewing building survey reports and tender documents prepared by consultants, estimating project costs during the tendering process for reference, and analysing tender reports to offer informed opinions.
As of the end of May this year, the URA has approved over 4,500 Smart Tender applications, benefiting up to 480,000 residential units across single-block buildings and estates of various ages.
Additionally, Smart Tender offers an E-tendering platform that allows consulting firms and contractors to compete for rehabilitation projects without interference, making the market more open and the tendering process fairer and more transparent. The URA team compared and analysed bid response data before and after the launch of Smart Tender and found that the overall number of bids increased by up to twofold following its implementation. This demonstrates that the programme not only helps owners and OCs of buildings of different ages and scales to access more information and technical support for building rehabilitation, but also increases the number of bids received. This provides owners with more choices, reducing the risk of bid-rigging, and creates a win-win situation for both owners and contractors.
Furthermore, recognising that inexperienced owners may find the tender documents and contracts for rehabilitation works complex and difficult to understand, the URA engaged architectural and legal professionals to produce 18 sets of sample tender and contract documents. These documents are designed for OCs to engage consultants or contractors for building repair works in common areas, covering aspects such as building inspection, repairs, fire safety enhancements, drainage systems, and elevator upgrades. They standardise and formalise tender and contract clauses, which are uploaded to the “Building Rehabilitation Platform” for owners to use, significantly reducing the time owners and OCs spend preparing and drafting related documents.
To save owners from the hassle of extensive administrative work, such as filling out multiple forms when applying for various rehabilitation subsidy schemes, the team restructured the information for different building rehabilitation assistance programmes and developed an online application form, simplifying the application process for the owners.
(3) Establishing Financial Reserves for Preventive Maintenance
Building rehabilitation works are extensive and complex. Even if owners intend to perform regular maintenance or servicing of their buildings and communal facilities, a lack of understanding of inspection methods and maintenance cycles makes it challenging to budget effectively or to proactively establish reserves for future repairs.
Data shows that the cost of building repair works often runs into millions or even tens of millions of dollars; for large estates, the expenses can reach hundreds of millions. Without a proper financial budget and ongoing contributions, owners may feel hesitant or resistant when their estate or building requires major repairs.
To address this issue, the URA team has compiled Hong Kong’s first "Guidelines and Templates for Preparing Maintenance Manual for Residential and Composite Buildings" (The Guidelines and Templates). The Guidelines and Templates were developed in alignment with the current legal requirements for timely building maintenance and drawing on successful experience from well-maintained large estates. The documents list out detailed maintenance tasks for various parts of the building’s communal areas and the corresponding scope of works, as well as the recommended inspection methods and maintenance cycles for these facilities. This helps owners or management companies formulate regular maintenance and servicing plans. Once owners understand the necessary maintenance tasks and develop a plan, they can better prepare financially for future expenditures.
In April last year, the URA launched a new Preventive Maintenance Subsidy Scheme (PMSS), which subsidises owners to implement maintenance work driven primarily by preventive aims and, more importantly, encourages owners to start building financial reserves for future repairs early on.
Eligible OCs and owners’ groups will receive subsidies to engage an Authorised Person to develop ten-year maintenance plans and cost estimates for these works, referencing the Guidelines and Templates. For owners or OCs that establish a special fund and make consistent contributions for three consecutive years, the URA will provide a lump-sum subsidy equivalent to 10% of the total contributions made during that period, encouraging owners to make regular, ongoing payments.
Since its launch in April 2024, the PMSS has so far received 13 applications covering over 7,600 residential units, with buildings ranging from single-block structures to large estates; their ages vary from mid-30-year-old buildings to those over 60 years old. Some of these applications involved buildings that have recently completed major repair works, with OCs already planning and saving for the next maintenance cycle. This demonstrates that the URA’s approach of encouraging owners to establish financial reserves for building maintenance is gradually gaining recognition.
Lifespan of eResidence Tower 3 reaches 75 years with proper maintenance
In addition to promoting the concept of preventive maintenance to property owners, the URA also acts as a facilitator, exploring ways to extend the service life of newly constructed buildings through improved structural design and building materials.
In the self-developed project eResidence Tower 3, the URA enhances the buildings’ overall structural through three key measures: applying galvanised steel reinforcement to improve rust resistance; increasing the proportion of silica in concrete to enhance durability and slow aging; and using higher-strength concrete in columns, beams, and structural walls to improve load-bearing capacity. These measures make the building's structure more robust, reduce the likelihood of structural damage after completion, and decrease the scope and frequency of future repairs. Furthermore, waterproofing measures are strengthened in the units of eResidence Tower 3 to lower the risk of water ingress in the future.
The above measures implemented for eResidence Tower 3 involve around 2 million in additional costs, which accounts for less than 1% of the total construction cost, yet significantly extends the building’s lifespan. With proper ongoing maintenance, the lifespan of eResidence Tower 3 could be increased from 50 to 75 years, substantially reducing future pressure for demolition and redevelopment.
We have introduced an enhanced version of the Deed of Mutual Covenant (DMC) for eResidence Tower 3, establishing clear provisions for the first 10-year maintenance and repair plan, along with cost estimates. In future, the DMC manager will propose to OC the cost each unit should bear and contributions to the Special Fund based on the maintenance plan for discussion and implementation. The URA will also provide initial funding to the Special Fund of eResidence Tower 3 to encourage the owners to make contributions.
Over the years, the URA has played an advocate and facilitator role in building rehabilitation efforts. To date, over 8,200 buildings have completed or are undergoing rehabilitation, benefiting more than 740,000 residential units. For the five rehabilitation subsidy schemes that the URA assists the government in implementing, over 27,000 valid applications have been received so far, resulting in the disbursement of over HKD 1.5 billion in funding.
The Unity and Determination of Property Owners are Essential for Successful Rehabilitation
The process of building rehabilitation is lengthy and involves several steps: seeking owners’ consensus, appointing works consultants, conducting condition surveys, preparing tender documents, appointing works contractor, commencing the work and supervising the site, and inspecting the work. Therefore, the commitment and collective resolve of owners are the key success factors of building rehabilitation.
I am pleased to have had the opportunity to meet with two passionate and determined property owners to discuss issues related to Hong Kong’s ageing buildings, major repairs, and the future direction of building rehabilitation before my retirement. One of them is Lam Ka-fai Aaron, a district councillor in Sham Shui Po and chairman of the OC of Yee Kok Court. The estate where he resides is 40 years old and comprises about 700 residential units.
It took seven years for the OC of Yee Kok Court to appoint a works contractor for repair works, after overcoming multiple challenges such as the need to retender due to the closure of the appointed consultancy company, and being unable to arrange OC meetings due to social distancing measures during the COVID pandemic. Aaron regarded that the success in implementing and commencing the works relied on the unity, determination, and patience of all the owners. He took the initiative to compile a detailed guide, with illustrations and explanations, documenting the process of organising the repair works, outlining the scope of communal areas, various construction options, and listing out frequently asked questions to address the owners’ concerns, with the aim of sharing the experiences and insights gained from this significant endeavour with others on the same path.
The other owner that I met with was Allen Ha, the convenor of the maintenance and repair sub-committee of the OC of Residence Bel-Air, a large private estate on Hong Kong Island with over 2,700 residential units. The estate is around 20 years old and is not yet due for mandatory inspection. Despite this, it places great importance on building maintenance and fully endorses the concept that "prevention is better than cure" in building rehabilitation.
Collaborating with the URA, the estate initiated a pilot preventive maintenance programme about two years ago. This included establishing the scope of future repairs, drafting tender documents for the appointment of recognised professionals, and other preparatory work. Through concerted efforts by the owners, OC, and property management company, the estate appointed an Authorised Person earlier this year, who tailored a comprehensive "Building Maintenance Manual" for the estate based on the URA’s Guidelines and Templates. The inspections of shared facilities and communal areas will be conducted according to the manual, which facilitates the development of maintenance plans and cost estimates, proactively preparing for future rehabilitation works.
Research on " New Strategy on Building Rehabilitation 2.0" Commences This Year
In fact, dedicated owners like Lam and Ha are quite rare. Given the continuous increase in the number of ageing buildings, society genuinely needs more owners who value maintenance and actively participate in promoting building rehabilitation, so that the longevity of buildings can be extended effectively.
After completing the first NSBR study in 2020, the URA began preparations last year for the launch NSBR 2.0 study later this year. This initiative will delve into regulatory requirements, institutional arrangements, and the utilisation of innovative technology, with the aim of developing concrete recommendations to enhance the promotion of building rehabilitation and prolong building lifespan.
Specifically, we will explore whether legislation or amendments to existing regulations related to building maintenance are required to mandate owners to develop periodic maintenance plans, establish statutory arrangements for repair funds, and set contribution budgets, thereby urging them to take a more active role in fulfilling their responsibilities for maintaining property conditions.
Regarding institutional arrangements, given that the number of ageing buildings will increase continuously, the NSBR 2.0 study will also consider the feasibility of establishing a dedicated statutory body to coordinate, promote, and supervise all matters related to building rehabilitation and maintenance.
Moreover, applying new technologies or techniques to extend the service life of buildings is also a key focus. Drawing on the experience of eResidence Tower 3, we will explore how the application of innovative technologies, materials, and maintenance methods across various types and ages of buildings can improve the lifespan of buildings, thus reducing future redevelopment pressures.
I am pleased to note that the Government, in the 2024 Policy Address, proposed a one-year pilot scheme for joint property management (JPM) in selected districts, elevating the URA’s trial of JPM in the Lung Shing area to a policy level. Recently, the Executive Council directed the URA to review and optimise efforts to strengthen building maintenance, extend the lifespan of older buildings, and propose specific policy recommendations. This is the first time the issue of prolonging building lifespans has been raised to the policy level, reflecting the significance placed on this matter and positively influencing efforts to promote building rehabilitation.
I believe that publicity and education are equally important in changing owners’ mindset on their responsibility in building maintenance. The URA's statutory role is to promote building maintenance, but to disseminate information more effectively and widely to the public, the attention and focus of the media are particularly crucial. I would like to take this opportunity to sincerely thank our media friends for their long-standing support of the URA, bringing information about building rehabilitation and preventive maintenance into people's homes through extensive coverage. As a property owner myself, I pledge to lead by example by fulfilling my responsibilities in maintaining the interior and exterior of my property in good condition, thereby reducing long-term reliance on social resources for maintenance and alleviating premature pressure for redevelopment.
I sincerely wish all buildings remain healthy and long-lasting, and that our citizens enjoy peaceful, prosperous, and fulfilling lives!