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More sites set to test developers' appetites 2.
Developers cautious of premiums 3.
Unique buildings deserve better
1. More sites set to test developers' appetites The
Government has four more sites on this year's land disposal programme application
list that can be used to develop hotels. Apart from the 2.93-hectare waterfront
commercial lot in the Hunghom reclamation area, another large tract of land, zoned
for commercial-residential use, is in Oil Street, North Point. It covers 1.46
hectares and has gross floor area potential of 1.66 million square feet. The development
must include at least 530,000 sq ft of residential space and the rest can be hotel,
office or retail space. Another site is on Yeung Uk Road, Tsuen Wan, and spans
1.42 hectares, with a maximum gross floor area of 1.45 million sq ft. The site
had been zoned for hotel development in 1997 but the use has changed to commercial-residential
to provide flexibility for development. Developers can opt to develop the site
for office, retail or residential use, or a mix. The maximum area for residential
use is restricted to 764,000 sq ft. A smaller commercial plot in Tin Shui Wai,
spanning about 70,000 sq ft, can provide a total developable area of nearly 280,000
sq ft. The plot can be used to build a hotel with a maximum of 260 rooms or office
blocks with a minimum retail area of 53,800 sq ft. Surpass Property Strategy managing
director Charles Lai Chin-pang said the Government had made a wise decision to
permit more flexibility in land use, thus justifying a higher market price for
the sites. "Hotel development bears a much higher risk than office because
the development time involved is longer, construction cost is higher and future
profit could fluctuate even though Hong Kong tourism prospects are good,"
he said. However, he said the Government was providing certain incentives for
hotel development. These included bonus plot ratios for the ground-floor reception
and baggage loading areas and exemption of back-office space from the calculable
gross floor area. [Source:
SCMP, 15 May 2002] 2.
Developers cautious of premiums
Last month's land auction result has set the benchmark for land premium calculation
but developers are still cautious about premium settlements, according to Deputy
Lands Director John Corrigall. Sources said the Government had revised upwards
some land premium charges for lease modifications or private treaty grants due
to good land auction results in the middle of last month. Mr Corrigall said: "In
my view, the land auction is a good benchmark for valuers [in calculating land
premium] but people are not making up their minds [in reaching a compromise with
the Government]." He declined to say if the Government had increased the
premium charge after the land auction, given there was no significant cases to
assess in the past three to four weeks. However, Sun Hung Kai Properties (SHKP)
indicated it would take a more aggressive attitude. Vice-chairman and managing
director Thomas Kwok Ping-kwong said on Monday the group's premium payable for
conversion of land use from agricultural to residential use this year would be
higher than last year. The group committed HK$2.1 billion to settle a basket of
land premiums on seven projects shortly after the September 11 terrorist attacks
in the United States. Mr Corrigall said he did not realise developers had taken
a more aggressive move in negotiating land premiums. "Perhaps developers
are still digesting what happened at the auction and will see whether market sentiment
can be sustained," he said. An example, he said, was a project in Tung Lo
Wan Hill Road, Sha Tin, for which the Government and SHKP had been discussing
the premium for more than five months. No agreement has yet been reached. SHKP
is in talks with the Government on the land premium for a total residential area
of 742,000 square feet to be built on three adjacent agricultural lots near Tung
Lo Wan Hill Road. "A very sizeable residential site in Sha Tin was sold at
the last auction - reasonably comparable to Tung Lo Wan Hill Road," Mr Corrigall
said. He said there was a small adjustment to the premium for the SHKP project
after the land auction but declined to say if the figure had been revised up or
down. A 1.93-hectare former government quarters site at Pak Tak Yuen on Lok Kwai
Path, Sha Tin, was bought by Nan Fung Development and USI Holdings for HK$660
million last month, representing an accommodation value of about HK$1,500 per
square foot. The price was better than market expectations, which ranged from
HK$543 million to HK$650 million. Sources said the Lands Department had offered
a higher premium to the Kowloon-Canton Railway Corp early this month for a commercial-residential
development at a light-rail station in Tin Shui Wai with a total developable area
of 982,000 sq ft. The latest offer reflected the land auction result. Mr Corrigall
did not comment on the latest land value. He said Cheung Kong (Holdings) had accepted
an offer for a site near the Tin Shui Wai site before the land auction. The site
- a bus terminal and some government land - can be developed into 1.71 million
sq ft of residential space and 97,000 sq ft for a car park. [Source:
SCMP, 15 May 2002] 3.
Unique buildings deserve better
At the end of last month, the Government announced the Tamar site would become
home to government offices and a civic centre. Perhaps to answer doubts raised
in the private sector on the potential value of the site, which would be lost
if not auctioned, the Government said the value of the Tamar site would be offset
by the future sale of two "prime commercial sites" now occupied by Murray
Building and the Lower Albert Road Government Offices. Most discussions were focused
on how the Tamar site could be redeveloped, but very little attention had been
given to the possible fate of the two notable civic buildings which have served
the people of Hong Kong for decades and witnessed a substantial part of its history
- from the heights of economic growth to the SAR's return to China. The announcement
is a reflection of the typical Hong Kong redevelopment mentality which, over time,
has erased much of what is unique and authentic about this city, while at the
same time government officials are scratching their heads trying to invent stage-set
tourist attractions such as the Disney park. In the commercially driven property
market, the monetary value of scarce land always comes before any cultural, social
or historic value of a building. Both Murray Building and the Government Offices
are excellent examples of modern architecture of their era. More significantly,
both exhibit clever and sensitive adaptations to local conditions - climate, available
materials and workmanship - that are unique to Hong Kong. The facade of the Murray
Building, for example, is designed with integrated brise-soleil that shields offices
from the strong southern sun and with windows oriented to stable northern light
and harbour views. The resulting zigzag perimeter is also carefully dimensioned,
offering the possibility of well-proportioned private offices. The innovative
approach and integrated drop-off are both unique in Hong Kong and function perfectly
well. In a more natural setting, the Lower Albert Road Government Offices across
the street exercise great restraint in scale and texture, fitting comfortably
in a garden surrounding, carefully negotiating the contour and harmonising well
with its dignified neighbours - St John's Cathedral and what is now the Supreme
Court Building. Many government officials expressed deep affection for the large
ancient tree outside the main entrance, a result of the integral approach to landscape
and architecture. The simple yet monumental portico, the backdrop to short interviews
and letter handing, is yet another response to the local weather, providing cover
in rain and shade in heat. The successes of both buildings have inspired subsequent
generations of civic architecture across the city. Some might say that these buildings
have aged and become obsolete, or that retaining them would be a waste to the
commercial values of these sites, particularly when the same sites can now be
(miraculously) redeveloped into substantially greater volume. Yet both buildings
are, in many other ways, more valuable than the dollar signs or the gross floor
area that redevelopment could bring. The Lower Albert Road Government Offices
headquarters building could become a Colonial Museum in addition to serving, in
part, as rental office space for non-government organisations. The Tourism Board
might entertain the idea and could easily map out a series of routes for visitors
to learn about our colonial past, including stops at this Colonial Museum and
what was the Governor's House. The Murray Building, on the other hand, could still
be rented to other office users to generate steady revenue without being demolished.
Even when redevelopment is unavoidable for sites with historically significant
buildings, alternative modes of redevelopment could be considered to achieve a
balance between advancement and tradition. As an example, a brief for the Lower
Albert Road Government Offices redevelopment may stipulate that, while demolition
of the extension building is allowed, integration with and modernisation of the
main headquarters building is also part of the requirement. As a maturing culture,
it is becoming essential that we recognise the place of these buildings in our
society. They have witnessed our growth in past years and are significant parts
of who we are now; they are products of our culture and their continual existence
adds richness to our city. That layered richness enriches us and attracts visitors
touring around our city - our streetscape and buildings together are a living
exhibit of our history and culture. This rich layering is a main ingredient found
in most major cities people love to visit. Shanghai, for instance, would have
a very different flavour without the Bund and its line of classic architecture,
a fusion of Western language and Chinese details, and Paris would not be Paris
if it was all modern architecture such as the Pompidou Centre without the low-rise,
mansard-roofed buildings. In Hong Kong, the success of the re-constructed Murray
House in Stanley, now a favourite weekend spot for tourists and Hong Kong residents
alike, is a clear message of people's appreciation of our unique architectural
heritage and support of their sensitive integration into our present city-scape.
Earlier demolitions of the Hilton Hotel and Gong Pak Hong (Beaconsfield House)
to make way for the new Cheung Kong Center have already taken away two significant
buildings from the Central core. If Murray Building and the Lower Albert Road
Government Offices were also to be demolished altogether, we would have wiped
out major pieces of our unique history cast in the form of architecture. Irene
Lai is an architect and a member of the Hong Kong Institute of Architects. [Source:
SCMP, 15 May 2002] |  |
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