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Ambrose Li

The Hong Kong Jockey Club has sparked controversy with its plan of redeveloping a sports complex into residential blocks in the upscale Happy Valley area without being required to pay a land premium.
The club’s move into real estate raised concerns about setting a precedent for the non-profit body generating revenue through housing, with legislators calling for clarity over the intended use of the project while questioning how profits would be managed.
The Post takes a deeper look at the controversy.
1. What is the controversy about?
The club is not required to pay a land premium, which means it will benefit financially from owning a piece of prime real estate, with high potential earnings from converting the existing sports complex into 21 residential blocks.
It gained approval for the construction of those blocks from the Buildings Department in June.
The sports complex, which has tennis and squash courts, a golf simulation room, fitness studios and other recreational facilities, was built on a plot of prime land that was bought by the club through public auction in the “early years”, according to the Development Bureau.
Brian Wong Shiu-hung, a researcher with NGO Liber Research Community, said he was concerned the development would set a precedent for the club to profit through property leased to them at very favourable prices, which he considered “unreasonable”.
Wong also criticised the government for not narrowing the terms of the lease when the contract with the club was extended in 2005, citing outdated terms that only governed the use of the site as stables.
Lawmaker Doreen Kong Yuk-foon said the club should be transparent about its development plans, the purpose of the homes, and what the club would do with profits from their sale.

2. Why is the club exempt from paying a land premium?
The Development Bureau said the club had bought the land at 48 Shan Kwong Road through a public auction in the “early years”. The lease did not impose any restrictions on its use and the site had also been rezoned for residential use in the early 1980s.
The site was leased to the club in 1930 at an annual rent of HK$558 for 75 years, with the lease renewed in 2005 at HK$84,600 per year.
The site was occupied by two blocks of stables in the 1930s and rezoned for residential purposes in 1981.
The club confirmed it had been granted a temporary planning permit to use the site as a sports complex since the 1980s, with the site serving as a temporary recreational facility for members since 1988.
To secure the extension of the temporary planning permit this year, the club said it had “committed to redeveloping the site into a residential-cum-sports complex, subject to further studies to be undertaken”.
The club also added that the Town Planning Board had in fact recently indicated the club should “actively implement” the use of the site as residential, as designated.
Veteran surveyor Lau Chun-kong noted the lease terms did not include a clause to pay land premiums.

3. What is the planned redevelopment?
The application filed by the club in January revealed it had revisited the project’s mix of flats and conducted a business review following a property market downturn in the last quarter of 2023.
The plan was approved by the Buildings Department in June, which gave permission for the construction of three 21-storey residential blocks offering a total gross floor area of around 485,900 sq ft. The new development would also include a clubhouse over two floors for residents.
The club said it hoped to finalise its town planning application by the end of 2025, while demolition would only take place in the second quarter of 2027 as the steep slope on which the sports complex stood posed constraints and challenges.
The new residential complex would take at least five years to build, the club added.


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Hong Kong housing

From horses to homes: a look at the controversy of Hong Kong Jockey Club’s real estate plans

The site of the Jockey Club’s existing sports complex at 48 Shan Kwong Road in Happy Valley. Photo: Jelly Tse

Horses at the Jockey Club’s Shan Kwong Road stables in a photo taken in 1978. Photo: Yau Tin-kwai

Lawmaker Doreen Kong says the club should be transparent about how it will use profits from sales of the planned development. Photo: Edmond So

Hong Kong Jockey Club can decide prime site’s use, authorities say, after flats plan sparks concern

The sports complex (with blue structure on roof) is located at 48 Shan Kwong Road. in Happy Valley. Photo: Jelly Tse

The sports complex sits on a steep slope in Happy Valley. Photo: Jelly Tse

Hong Kong’s Vivian Kong joins 80 students on Hangzhou trip for her first day at Jockey Club

Olympic medallist Vivian Kong (left) joins students on a mentorship trip to the mainland. Photo: Sam Tsang

The trip itinerary includes visits to West Lake in Hangzhou, local innovation and technology companies, tertiary education institutions and museums. Photo: Sam Tsang

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Hong Kong

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The Post delves into the unfolding debate over the racing organisation’s plans to turn a sports complex into a residential project


The Post delves into the unfolding debate over the racing organisation’s plans to turn a sports complex into a residential project.


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Hong Kong Jockey Club

Urban planning

Hong Kong society

Hong Kong racing

HKJC

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Explainer | From horses to homes: a look at the controversy of Hong Kong Jockey Club’s real estate plans

The Post delves into the unfolding debate over the racing organisation’s plans to turn a sports complex into a residential project

1. What is the controversy about?