The influence of the West Kowloon Cultural Development on the property market has been exaggerated, Secretary for Housing, Planning & Lands Michael Suen says.

In an article, "The Myth of the WKCD's Impact on the Property Market", published in newspapers today, Mr Suen wrote: "It is a fact that West Kowloon is a prime site. It is also a fact that the WKCD project will include a commercial and residential element. But it is extremely far-fetched to suggest that the developer of the WKCD can unduly manipulate the property market, let alone monopolise it."

He stressed that the development density of the WKCD has always been of great concern. That is why a plot ratio of 1.81 was set as a point of reference for the amount of commercial and residential development for the project.

Baseline plot ratio of 1.81 based on many factors

They arrived at this ratio after considering the plot ratio in the winning entry in the concept plan competition, previous zoning of the site, and the scale of provision of various facilities that will make up the balance of the development.

"Considering the volatility of the property market and differences between the proposals to be submitted by proponents in terms of design, quality and mode of operation, it is quite evident that it would be prudent to allow proponents sufficient flexibility in development density," Mr Suen said..

"This is why we have not included a plot ratio cap as one of the mandatory requirements. However, this does not mean they will have the liberty of going way beyond it on their own. They will have to provide sufficient justification for exceeding the plot ratio set by the Government. The public, too, need to be convinced."

Impact on commercial, residential land supply to be considered

During the negotiations and selection of a preferred proposal, a plot ratio of 1.81 will be used as a baseline with the aim of lowering substantially the plot ratio and development density of each of the proposals.

"We will of course consider the possible impact on the overall commercial and residential land supply," he said.

"I believe that so long as we set a development baseline and take it as the basis for lowering development density, there should be no question of the WKCD's commercial and residential development affecting the overall property market."

He noted, though, that the successful proponent can sustain the operation of arts and cultural facilities using proceeds from the commercial development.

Private sector to develop, run the WKCD

Because the Government's current financial position precludes it from allocating enormous resources for the development of a cultural district, it adopted the current approach to develop WKCD. It is hoping to draw on the private sector's rich know-how and experience and let it develop and run the cultural district on a self-financing basis.

"I believe the community want the WKCD to be a world-class state-of-the-art cultural district and a new Hong Kong landmark, with its overall design conforming with the concept of the winning entry in the international concept plan competition, its facilities and management working in harmony, and its construction and operation being effective and sustainable," Mr Suen said.

The three screened-in proposals have only complied with the stated mandatory requirements, he said. That does not mean that the Government has formed any opinion on them or accepted any parts of their individual proposals.

Community's views to be taken into account