Page 37 - JCAU-5-2

Journal of Chinese
Architecture and Urbanism Industrial space renewal in Hong Kong and Shanghai

Figure 1. Distribution of industrial building renewal in Hong Kong (2010 – 2019). Source: Lands Department in Hong Kong

December 31, 2019, except for the cases withdrawn or
terminated after approval, 14 reconstruction applications
and 138 applications for whole-building retrofitting have
been approved, accounting for 9.5% of the total number
of industrial buildings and able to offer more than 340,000
and 2,130,000 sqm floor area respectively. However, the
effectiveness of the first-round revitalization policy was
not satisfactory due to the sharp rise in price for industrial
buildings and rents. Figure 2 shows that the growth rate of
the price index of private industrial buildings with multiple
ownerships in Hong Kong was significantly higher than
that of other types of properties during the same period.
According to the report from Rating and Valuation
Department, the price and rental indices of industrial Figure 2. Price indices for Hong Kong property market (1997 – 2020).
buildings in Hong Kong have risen by an average of 16% Source: Rating and Valuation Department in Hong Kong
and 8.9%, respectively, each year. Although the vacancy
rate of industrial buildings dropped to 6.1% at the end of industrial buildings. Urban Renewal Authority (URA) was
2017 (from 10.9% in 2001) in the first round of policy, many set up to speed up the renewal, under which the residential
buildings no longer fit modern fire safety standards, and development plan of Cheung Hing Industrial Building in
the cost and difficulty of renovation are considerable. In 12P Smithfield, as well as the reconstruction plan of Wing
addition, quite a few industrial buildings have been used for Hong industrial building at 777 – 783 Yu Chau West Street,
non-industrial purposes through an informal transition that were two schemes to cope with the socioeconomic transition
does not comply with the statutory planning system or land of Hong Kong (Figure 3). However, due to the disagreeable
leases, motivation from the market to renew these buildings negotiation with multiple owners and unaffordable
thus is limited, and the process is slow (Xian & Chen, compensation, the former case failed to be renewed, and the
2015). This led to limited success in the reconstruction of latter was only partly renewed.

Volume 5 Issue 2 (2023) 4 https://doi.org/10.36922/jcau.0431