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Natalie Wong

Jeffie Lam

Hong Kong’s Urban Renewal Authority (URA) has recorded an operating surplus of HK$338 million (US$43.3 million) for the 2025-26 financial year, after reporting three straight years of losses.
At a banquet on Friday to mark the statutory body’s 25th anniversary, chairman Chow Chung-kong announced that the URA had returned to profit in the 2025-26 financial year, recording an operating surplus to fund ongoing urban renewal initiatives.
That followed three consecutive financial years of losses. Earlier this year, the cash-strapped body raised HK$8 billion by selling bonds to finance capital expenditure and new projects.
Chow said that despite a volatile external environment and property market fluctuations, the authority had adopted “flexible strategies” and used its resources to meet its operational targets, without elaborating on the strategies it used to turn a profit. Detailed financial figures were not provided on Friday.
“Improving residents’ living environments and ensuring the financial sustainability of urban redevelopment requires uniting the efforts of the government, the business community, professional sectors and district stakeholders,” he said.
A coming priority for the authority, he said, was to accelerate preparations for an enhanced “Smart Tender” scheme, aimed at strengthening support for property owners when they hired engineering consultants and contractors.
The authority was finalising specific measures and implementation details with the government, the URA said in a statement.

Chief Executive John Lee Ka-chiu said in a speech at the event that the government had been working hand in hand with the URA to review the statutory body’s financial and operating model, including its acquisition policies and arrangements to drive urban renewal in older districts.
“I believe the URA will continue to press ahead with an innovative mindset, joining hands with the government and stakeholders across various sectors to create high-quality urban living and build a better Hong Kong together,” he said.
The authority’s financial woes prompted the government to increase its borrowing limit to HK$35 billion to allow it to raise more funds to finance operations last year. The move came after the body – which had been loss-making since the 2022-23 financial year – reported another annual deficit of about HK$2.72 billion.
The figure comprised an operating deficit of HK$41 million and HK$2.68 billion in impairment provisions resulting from the market downturn. The body recorded a net asset value of HK$43.6 billion and a cash flow of HK$21.2 billion.
Chow had said at the time that he was “not too optimistic” about profits in the 2025-26 financial year ending in March, adding the body would take forward projects that had relatively small-scale ownership but provided greater planning benefits when combined with other ongoing projects.
Official data showed that the authority recorded an annual deficit of HK$3.5 billion in 2022-23 and another HK$3.9 billion in 2023-24.
In the face of the dire financial situation, URA managing director Donald Choi Wun-hing said in October last year that apart from seeking external financial help, the authority would also review its compensation mechanism, which provides owner-occupiers with payouts equivalent to the market price of a comparable seven-year-old home in the same district.
He noted that, amid a declining property market and plummeting land values, the body faced a “buy high, sell low” situation, meaning it would lose money on nearly every single project.


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URA posts HK$338 million operating surplus after three years of losses

Urban Renewal Authority chairman Chow Chung-kong addresses a banquet to mark the body’s 25th anniversary. Photo: Facebook/URAmity

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Hong Kong Economy

Chairman Chow Chung-kong reveals at URA’s 25th anniversary banquet that body has returned to profit in the 2025-26 financial year


Chairman Chow Chung-kong reveals at URA’s 25th anniversary banquet that body has returned to profit in the 2025-26 financial year.


URA posts HK$338 million operating surplus after three years of losses

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Chairman Chow Chung-kong reveals at URA’s 25th anniversary banquet that body has returned to profit in the 2025-26 financial year

Chairman Chow Chung-kong reveals at URA’s 25th anniversary banquet that body has returned to profit in the 2025-26 financial year