Commerical Lands Use on the Increase

Recently the government initiates the change in the existing land use for GIC to Commerical, Following the similar case of the land use change in SheungWan, the Town Planning Board endorses that the government-owned land occuplied by the Water Supply branch, located in North Point, King's road 611, is changed in use from Government, Institue and Community to Commerical. Its gross floor area is around 758,890 square feet.

The land, 59,591 square feet, located in between King's road and Man Kong street is occupied by the Water Supply Branch. To change the land use to Commerial one, yesterday Town Planning Board amended the North Point outline Zoning Plan. If office buildings are proposed to build over there, the plot ratio is 15 and thus the gross floor area is up to 758,862. If hotels estabishment is proposed to build, the plot ratio is 12. After the plan amendment, the Water Supply Branch will move to Chai Wan. And the land will be included into the landsale programme.

Close to the water supply branch land is a Tai Koo commerial building in King's road 625. A bit further away, there is a Lam Pat Yen's proposed North Point plaza where high-tech commercial buildings would be built.

A surveyor says that as the commerical value of the land is low, it is anticipated the land value per square feet is just between $HK1000 and $HK1300. If the land is used for building hotels, the expected land value per square foot would be higher, in between $HK1500 and $HK1800, its total value which would reach between ten billion and thirteen billion HK dollar.

In the current commercial property market at North Point, the renting rate is satisfactory. According to Mr Li Kin Man, the director of the Sale and Rent Branch in Vicar commerial building, the rent per square feet for XXX building is ranged between $HK15 and $HK16. And its average price per square feet is about $HK000.

Recently the government takes an effort to change the GIC use of Land into the commerical one. Apart from the change the use of Water-supply branch land, earily last month the land for a bus station, abutting Shun Tat centre, was changed into the land for commerial use. Regarding the land for Kamar at Wan Chai, the government attempts to change its use for sale. The above three sites can provide the floor area of up to 3,847,620 square feet.

Also, the Town Planning Board anounces that two piece of lands along the onshore of North Point near Oil street is changed in use for Comprehensive Development Area. And a land abutting on Harbor Heights Tower is changed in use for "culture/ commercial, leisure and tourism".

Meanwhile, to show clearly the existing use in the amended OZP, the land occupied by China Light Ltd and originally specified for Comprehensive Redevelopment area, is changed in use for "Government, Institute and Community".

The article is translated from the original one published in Hong Kong Economic Journal