Developing brownfield sites in HK no easy task
Recently the Wang Chau development plan has generated much heated debate. Some argue that the government should develop brownfield sites first and not touch the green belts and other inhabited areas. This argument on the surface attracts sympathetic support because there are always negative feelings against the government when it appears to be neglecting vulnerable groups. The government’s decision to prioritize the development of green belts has attracted considerable criticism. Indeed, when the owners of brownfield sites are wealthy landlords and those living in the affected villages are grassroots residents, the public tend to think the government is neglecting the interests of the grassroots. But there is a need for us to be more objective when examining this issue.
Brownfield is an imported concept. In Western countries, brownfield sites are former areas of industrial land which are abandoned and where the soil is usually polluted. Because of this, there are often limitations on the use of brownfield sites. In Hong Kong, brownfields emerge not because of the abandonment of industries; local brownfields were once fertile farmland. When Hong Kong started transitioning to secondary and tertiary production, these former farmlands were left idle. The landlords then started to rent out these lots of land for open-air storage purposes (mainly container yards). So a Hong Kong version of brownfields emerged.
Brownfields in Hong Kong do not have a clear definition; moreover there are no official records of how many brownfield sites Hong Kong actually has. According to the Development Bureau, there are at least 380 hectares of brownfield sites in the SAR, while some experts estimate there are 800 hectares or more. While these estimates differ greatly, there is no doubt the SAR has a huge number The author is the dean of the School of Continuing Education at Hong Kong Baptist University. of them. If all these are used effectively, they can help resolve the city’s severe housing shortage.
The problem is, however, that most of the brownfield sites are privately owned. The government simply cannot use brownfield sites freely. Since these brownfield sites started to be used, the land has been generating economic benefits for the owners. When the government wants to resume using brownfield sites for development, it has to deal with compensation and the transfer of land. This is a difficult and controversial process, particularly when it comes to the issue of compensation.
Prioritizing the development of brownfields is the best option, theoretically, because brownfield sites have been abandoned. But the development of these sites is obviously easier said than done. The ownership and transfer of title of brownfield sites for development is a complex issue. As mentioned, the owners’ consent has to be sought before the government can work on a suitable development plan. The most difficult part of that process is compensation. If private developers want to develop brownfield sites, they can acquire the land from the landlords at whatever price is agreed on. Private developers can always afford to pay a high price, because they can pass the high land costs on to future home buyers. But this changes when it comes to the development of public housing on brownfields. Hong Kong is a society where property rights are protected. The government cannot simply seize private property without paying adequate compensation. On the other hand, the government cannot pay a high price for brownfields. This impedes brownfield development.
Another point is that brownfield sites are now in use. Having brownfields for development implies the current users need to move out. As mentioned above, brownfields nowadays are mainly used as open-air container yards. When users are to move out, they need alternative land parcels to relocate to. The problem is where they can find such alternative locations? Open-air container yards are not welcomed by nearby residents. It is not easy to find a place to relocate to. Current users may have specific location preferences. If the relocated place is far away from the current site, more disagreements are likely. If the current users are not properly relocated, the chance of resuming brownfields is not high.
However, compared to other options, developing brownfield sites appears to be a reasonable option. The Wang Chau development plan is just the beginning. The Hung Shui Kiu development is a much larger brownfield development project, and it no doubt will generate more controversy.
Compared to other options, developing brownfield sites appears to be a reasonable option. The Wang Chau development plan is just the beginning.”