Compulsory purchase and compensation in Hong Kong: A study of the role of the Land Development Corporation in urban renewal

One of the major impediments to urban renewal in Hong Kong is the acquisition of land from different owners in order to form adequate parcels for development. Compulsory purchase powers are not available to the private sector as only public authorities can properly exercise powers over individuals in the public interest. In the case of urban renewal, when the Land Development Corporation (LDC) exercises compulsory purchase powers, it has to go through long and rigorous procedures to demonstrate that there is no undue detriment to the interests of landowners. In this paper the practice of the LDC in this respect is examined in detail and the problems and issues of land assembly in the urban renewal process highlighted. Finally, new policies for land assembly are suggested as means of dealing with the difficulties identified.