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Kai Hui Redevelopment Application Rejected by Town Planning Board Despite Planning Dept Non-Objection

1 day ago2 MIN
Kai Hui Redevelopment Application Rejected by Town Planning Board Despite Planning Dept Non-Objection

Summary

The Town Planning Board on Friday rejected an application to redevelop Kai Hui, a commercial building in Kowloon Bay, into a residential complex providing 1,140 units despite the Planning Department having earlier raised no objection. The applicant, a consortium including Capital Strategy and C.C. Land chairman Cheung Chung-kiu, sought to convert the underutilised office tower with its 25% vacancy rate into twin residential towers on a site spanning approximately 70,400 square feet. The proposed development would have featured a plot ratio of 7 times and was estimated for completion in 2033 .

Key Points

  • The Kai Hui redevelopment proposal sought to build two towers of 30 to 38 storeys (excluding two basement levels) providing 1,140 units with an average unit size of approximately 401 square feet .
  • The site area measures approximately 70,400 square feet, with the application seeking to increase the plot ratio from 5 times to 7 times for the residential portion at 6.5 times plot ratio .
  • Building heights were planned at approximately 110 metres and 136.45 metres above principal datum respectively, with total gross floor area of about 492,900 square feet .
  • The Planning Department advised submitting refined building height profiles to ensure the development would not intrude into the 20% ridgeline buffer zone .
  • The District Land Officer indicated the lot owner would need to apply for lease modification and pay land premium and administrative fees to implement the proposal .

Why It Matters

The outcome highlights the tension between addressing chronic office vacancy in Hong Kong's eastern corridor and preserving commercial land supply, as the Activate Kowloon East Office raised concerns that approving the conversion could set an undesirable precedent undermining the policy objective of ensuring stable commercial floor area in Kowloon East . For developers holding underperforming commercial properties, the rejection signals that even with a favourable Planning Department assessment, the Town Planning Board may prioritise broader district planning objectives over individual property optimisation strategies .
The outcome highlights the tension between addressing chronic office vacancy in Hong Kong's eastern corridor and preserving commercial land supply, as the Activate Kowloon East Office raised concerns that approving the conversion could set an undesirable precedent undermining the policy objective of ensuring stable commercial floor area in Kowloon East . For developers holding underperforming commercial properties, the rejection signals that even with a favourable Planning Department assessment, the Town Planning Board may prioritise broader district planning objectives over individual property optimisation strategies .

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