The GFA concession policy for underground car parks in Hong Kong has increasingly drawn public attention, prompting calls for the government to review it from the perspectives of construction cost and practicality. This brief delves into the hidden issues of the existing policy based on the practitioner feedback and suggest the possibility of refinement in the future.
In April 2011, propelled by the recommendations of the Council for Sustainable Development, the Hong Kong Government introduced a Gross Floor Area (GFA) concessions policy for car parks. This policy shift was a direct response to the growing public concerns about the environmental impact of above-ground car parks, which were perceived as the problem of inflating the building bulk and height, obstructing natural breezeways, and exacerbating the urban heat island effect. Under the new policy, underground car parks equipped with electric-vehicle (EV) charging facilities were granted 100% GFA concessions, while above-ground car parks were accorded only 50% concessions. The objective was to foster a more sustainable built environment by incentivizing developers to construct underground car parks, thereby diminishing the overall building bulk.
Recently, the private sector has voiced several pressing concerns regarding the safety, practicality and escalating costs of constructing basement car parks. These construction costs, which have emerged as a potentially insurmountable obstacle in the returns calculations for development projects, could be significantly higher than those above-ground alternatives. As a result, the financial burden, exacerbated by rising development costs, discourages market participants from initiating new projects. In addition, some extreme weather conditions in the past few years, in particular typhoons and heavy rains, served as a catalyst for raising awareness of the hidden drawbacks of over-reliance on underground car parks. The unprecedented flooding caused serious damage on these facilities, submerging vehicles and resulting in significant repercussions that could jeopardize human lives. Furthermore, practically speaking, some locations that might not be suitable for underground parking, such as low-lying areas or locations with rocks found in underground. This incident has reignited the debate on the sustainability and practicality of underground car parks, emphasizing the need to re-evaluate current policies.
Current governmental have addressed the needs to refine the policy direction established in 2011, and to aligning it more closely with the actual needs and realities of the present context. The Policy Address 2023 has focused the directions of streamlining of land administrative procedures, including the relaxation of the GFA exemption arrangements for parking spaces. If the underground car park has already reached two or more levels below ground, 100% GFA concession will be granted to no more than one above-ground car parking floor, presenting an increase from the previous 50% concession. However, only new land grants and through lease modifications can the properties enjoy such updated arrangements
Recognizing the government’s well-intended policy directions and actual market needs, would now not be an appropriate time for the government to further re-examine the GFA concession policy?
Given the multifaceted challenges that exist today, it is proposed that GFA exemptions can be granted for above-ground car parks while also removing the requirement for two-level basement parking, provided that these projects are thoughtfully designed with appropriate building bulk and height to adequately address to the potential visual and ventilation issues. The permission should be conditional on relevant environmental assessments to confirming no adverse impacts on ventilation and visual aspects, if needed. This approach would not only enhance cost-effectiveness and safety but also foster a more sustainable and resilient urban environment.
Additionally, favorable consideration should be given to minor relaxation of building height applications under the relevant Outline Zoning Plan for sites constrained to accommodate underground parking. For instance, it may not be feasible for small sites to accommodate a ramp running down to basement and other ramp serving upper floors; and low-lying areas, or sites with rocks found in underground are unsuitable for underground car parks. This approach ensures that practical constraints are addressed while maintaining the overall integrity of the development.
In conclusion, the history of Hong Kong’s underground car park demonstrates the importance of striking a balance between sustainability objective and pragmatic considerations. Although there may be benefits of underground car parks, the prevailing market conditions have changed significantly compared to the past. Allowing GFA exemptions for above-ground car parks with regulated building bulk and height could foster a more resilient, economical and cost-effective urban planning strategy while implementing the appropriate control by the government. As urban development progresses, it is crucial to adopt a holistic approach that considers not only environmental sustainability but also the long-term practicality and safety of infrastructure.