Policy Analysis on Industrial Building Revitalization
Policy Analysis on Industrial Building Revitalization
1. Background
In the past few decades, Hong Kong has undergone economic transformation from secondary industry to tertiary service. Due to the northern movement of the manufacturers and industrialists for the relocation of production activities, the demand of industrial buildings has declined. The surplus factory buildings have become unoccupied and so their market values have remained low when compared with other property sectors. With reference to the Property Review (2010) published by the Rating and Valuation Department, the vacancy rate of flatted factories reached 8% (1,388,000sq.m floor area) of the total stock. In particular in Kwun Tong, Tsuen Wan and Kwai Tsing, nearly 56% of the factory space was vacant.
In recent years, public controversy concerning the revitalization strategy of the industrial buildings has been raised, focusing on the social, economical and environmental aspects.
In the political context, the government has introduced ‘Residential (Group E)’ and ‘OU (Business)’ zones on the statutory plans, allowing the flexibility in permitted change of the usage of industrial buildings. The constant amendment of Outline Zoning Plan has caused numerous industrial buildings located within the non-industrial zones, encouraging the restructuring of industrial buildings through lease modification. It speeds up the pace of urban renewal. In the economical view, the obsolete factory buildings in urban areas have caused reduction in land value, wastage of precious land resources and expenses of heavy maintenance cost. Last but not the least, concerning the environmental issues, the old dilapidated industrial buildings scattered around metro areas have lead to unfavorable hygienic condition and undesirable environmental pollution, causing disturbance to the residents nearby.
2. Relevant Government Policies
The Hong Kong government has launched four measures to optimize the use of
1. Background
In the past few decades, Hong Kong has undergone economic transformation from secondary industry to tertiary service. Due to the northern movement of the manufacturers and industrialists for the relocation of production activities, the demand of industrial buildings has declined. The surplus factory buildings have become unoccupied and so their market values have remained low when compared with other property sectors. With reference to the Property Review (2010) published by the Rating and Valuation Department, the vacancy rate of flatted factories reached 8% (1,388,000sq.m floor area) of the total stock. In particular in Kwun Tong, Tsuen Wan and Kwai Tsing, nearly 56% of the factory space was vacant.
In recent years, public controversy concerning the revitalization strategy of the industrial buildings has been raised, focusing on the social, economical and environmental aspects.
In the political context, the government has introduced ‘Residential (Group E)’ and ‘OU (Business)’ zones on the statutory plans, allowing the flexibility in permitted change of the usage of industrial buildings. The constant amendment of Outline Zoning Plan has caused numerous industrial buildings located within the non-industrial zones, encouraging the restructuring of industrial buildings through lease modification. It speeds up the pace of urban renewal. In the economical view, the obsolete factory buildings in urban areas have caused reduction in land value, wastage of precious land resources and expenses of heavy maintenance cost. Last but not the least, concerning the environmental issues, the old dilapidated industrial buildings scattered around metro areas have lead to unfavorable hygienic condition and undesirable environmental pollution, causing disturbance to the residents nearby.
2. Relevant Government Policies
The Hong Kong government has launched four measures to optimize the use of
References: 1. Davis Langdon & Seah, 2011. Review of the ‘Revitalizing Industrial Buildings’ Policy. 2. Legislative Council, 2010. Official Record of Proceedings 3. Department of Architecture, The University of Hong Kong, 2004. Thesis Report: Revitalization of industrial buildings in San Po Kong. Lee Wing-kin. 4. Hong Kong Government, 2009. Policy Address 5. Legislative Council, 2011, Background brief on revitalization of industrial buildings 6. Colliers Surveyors, 2011, Research & Forecast Report, Hong Kong Industrial Market 7. Hong Kong Today, 2010, Industrial Building Revitalization and the Creative Industry.