During the recent debate on the West Kowloon Cultural District project, someone said, "getting the WKCD is getting everything". This is meant to suggest that whoever wins the right to develop the project will somehow become master of the universe, able to dominate Hong Kong's property market for years to come.

Someone else said, "splitting up the development of the WKCD is pacifying everybody". The 40-hectare WKCD site is likened to the strategic and rich land which warlords in the Three Kingdoms era were fighting over.

The influence of the WKCD on the property market has been exaggerated. 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.

Market-oriented land-supply policy

The Government's land supply policy is market-oriented. The duty of the Government is to provide adequate land supply through the Application List System, under which the market decides the timing and amount of land to be sold, with the price determined by market forces in the auction hall.

The Government believes that this policy ensures the healthy and stable development of the property market.

Each of the three WKCD screened-in proponents has submitted its proposal. During negotiations and selection of a preferred proposal for the development of WKCD, we will of course consider the possible impact on the overall commercial and residential land supply.

Development density a great concern

The development density of the WKCD has always been of great concern. Because of this, we have set a plot ratio of 1.81 as a point of reference for the amount of commercial and residential development for the project.

In doing so, we took due regard of 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.

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.

Recently, various sectors of the community have again expressed concern about the development density of the WKCD. I would like to stress that we will, during the negotiations and selection of a preferred proposal, use the plot ratio of 1.81 as a baseline with the aim of lowering substantially the plot ratio and development density of each of the proposals.

Commercial development to fund arts, cultural facilities

At the same time, we will bear in mind that the successful proponent can sustain the operation of arts and cultural facilities by means of proceeds from the commercial development.

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.

Project to be run on self-financing basis

Given the Government's current financial position, the allocation of enormous resources for the development of a cultural district is out of the question.

We decided, therefore, to adopt a new approach to develop WKCD, 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.

The Government announced on November 10 the result of the first stage of assessment for the WKCD development project. Three proposals have complied with the mandatory requirements set out in the invitation for proposals.

Screening-in means only that the proposals met requirements

I have to point out that the three screened-in proposals have only complied with the stated mandatory requirements. The screening-in does not mean that the Government has formed any opinion on them or accepted any parts of their individual proposals.

We will assess in great detail each screened-in proposal in accordance with the requirements of the invitation for proposals.

The views of the public will be collected through various consultation activities and will be fully taken into account before the Government decides to start negotiations with the proponent or proponents on how their proposals should be improved.

This article by Secretary for Housing, Planning & Lands Michael Suen was published in the South China Morning Post on December 10.