The Chief Executive in Council has approved the granting of two sites to the Urban Renewal Authority (URA), with the plots to be rezoned for residential use.

In a statement on Friday, the government said the sites on Bailey Street in Hung Hom and Tseung Kwan O Area 137 will be handed over to the URA by private treaty for a term of 50 years, at nominal premium of HK$1,000.

It said, according to its understanding, the two sites will be rezoned for residential use through town planning procedures.

Secretary for Development Bernadette Linn said granting the sites to the URA helps the body fulfil its urban renewal mission amid a sluggish property market.

"The granting of the two sites to the URA could also benefit the community. Specifically, the Bailey Street site can create synergy with the URA's cluster of redevelopment projects in the Kowloon City area," Linn said.

"As for the Tseung Kwan O Site, the original housing development of which has been deferred due to re-prioritisation of the Hong Kong Housing Authority's projects, granting the site to the URA would optimise the use of the land resources in a timely manner."

The government said the site on Bailey Street, with a net area of 7,610 square metres, would have an estimated a total gross floor area of about 68,000 square metres.

The site in Tseung Kwan O, it said, has a net area of about 9.15 hectares, and would have a total gross floor area of about 713,700 square metres.

The URA said it welcomes the decision and will make good use of the extra revenue generated from the two sites.