The Housing Authority on Monday approved the clearance and rehousing arrangements for Sai Wan Estate in Kennedy Town and Phase 1 of Ma Tau Wai Estate in To Kwa Wan as part of redevelopment plans.

Residents of Sai Wan Estate are required to move out by September 2029, while those living in blocks under Phase 1 clearance of Ma Tau Wai Estate must vacate by July 2029.

Affected households will be offered rehousing in other public housing projects currently under development in the same district.

They will receive a one-off relocation subsidy ranging from HK$10,350 to HK$33,050, depending on family size.

In addition, they will be given priority to buy subsidised flats launched for sale before the target clearance date.

Eligible one-person and two-person households may otherwise opt for a cash allowance of between HK$82,700 and HK$100,220 instead of rehousing.

For affected shop tenants, the Housing Authority will offer ex-gratia allowances equivalent to 15 times the monthly exclusive rent applicable on the day of the clearance announcement.

Shops "with unique characteristics and values of retention" will be selected and their operators will be allowed to participate in restricted tender exercises to lease selected vacant shops.

If they choose not to participate or are unsuccessful in the tender, they will receive a lump-sum payment of HK$113,500.

The plans were discussed and endorsed earlier on Monday by three committees under the authority.

Speaking to reporters after the meeting, Michael Luk, a member of the Commercial Properties Committee, said both estates have many elderly households, and he is concerned the relocation subsidy may not be sufficient.

“I think the Housing Authority should review the current relocation subsidy calculation mechanism,” he said.

“Or it should establish a tiered system under which those with greater economic means might receive a lower subsidy, while less privileged families or elderly households might receive additional subsidy.”

Another committee member, Anthony Chiu, pointed out that rental levels in newly built public housing estates are generally higher than in older estates, which could add to the financial burden of lower-income families and elderly residents.

Chiu, who's also executive director of the Federation of Public Housing Estates, added that with a notification period of more than 40 months for residents to move out, they should have sufficient time to make the necessary arrangements and plan ahead.