Urban Renewal Authority Managing Director Billy Lam says the redevelopment project in Kwun Tong town centre has been welcomed by the community.

Speaking on radio talk shows today, Mr Lam said the project will improve the local environment and bring huge economic benefits. About 3,300 job opportunities will be created during the redevelopment period, reducing Hong Kong's unemployment rate by 0.09 %. It will bring the area more than 17,300 job vacancies, almost five times the number of jobs now available there.

Mr Lam said the plot ratio will be reduced from 7.98 to 7.5 after considering views expressed by various sectors, adding that the reduction represents the maximum level of market risk that the authority can take.

He said the project has taken into consideration the interests of various quarters and struck a reasonable balance between development and conservation, environmental protection and the use of development space, and between financial cost control and resident opinion.

The authority will begin property acquisition and rehousing of tenants after the Town Planning Board and the Chief Executive in Council has approved the development plans. The project will be delivered in phases and will be completed in 12 years.