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1. Stage 2 Public Participation Programme for Kai Tak Planning Review launched

2. Investors eye Kwun Tong potential

1. Stage 2 Public Participation Programme for Kai Tak Planning Review launched
Hong Kong Government, 9 November 2005

The Government today (November 9) launched the Stage 2 Public Participation Programme for the Kai Tak Planning Review.

“The Planning Review is aimed at formulating a new development concept for Kai Tak under the ‘no reclamation’ scenario and a comprehensive Public Participation Programme has been devised to foster the building of consensus through an open and informed process,” a spokesman for the Planning Department said.

“In the Stage 2 Public Participation Programme, three different draft Outline Concept Plans (OCPs) have been prepared based on the views received in the Stage 1 Public Participation, to enable formulation of views on the development concept for Kai Tak,” the spokesman said.

In view of the Court of Final Appeal’s judgment handed down in January, 2004, regarding reclamation in the Harbour Area, a “no reclamation” scenario has been adopted as the starting point in preparing the development concepts for Kai Tak.

The spokesman said the OCPs were prepared with different land uses emphasis with a view to providing a balanced variety of development scenarios for discussion in the community.

The City in the Park concept (OCP1) aims to create two distinct residential neighbourhoods, with a high-density residential/stadium district in the North Apron Area and medium density residential developments on the runway island. This residential focused scenario is expected to house an overall population of 128,000 and a planned employment of 32,000.

The Kai Tak Glamour concept (OCP2) aims to regenerate the economic role of the ex-airport site by providing a high density office node adjoining the multi-purpose stadium in the North Apron Area, to medium density residential development on the runway island and to a cruise terminal and tourism node at the runway end. The office and tourism focused scenario will provide a less population level of 97,000. The employment level in this concept is 75,000, which is the highest among the three concepts.

The Sports by the Harbour concept (OCP3) aims to promote a sports and recreation hub in this part of the Metro Area, with low to medium density residential neighbourhoods created around recreation facilities to reinforce a green and lively urban district. A lower population level of 69,000 and employment level of 56,000 is planned for under this OCP.

The spokesman stressed that the draft OCPs were not development options to choose from, but to provide a basis for public discussion on possible development proposals on the Kai Tak site.

He added that all three OCPs have incorporated urban design concepts to highlight the heritage value of the ex-Kai Tak Airport and provided the framework to reinstate historical artifacts, e.g. Sung Wong Toi Rock, ex-air traffic control tower, etc.

The Stage 2 Public Participation Programme is a two-month exercise with at least seven public forums in various locations being organised to discuss the draft development concepts presented in the OCPs and issues of community concerns. The first territory-wide public forum will be held at the tip of the ex-airport runway on Saturday, November 19, 2005.

There will also be topical public forums to focus discussion on key issues, such as the Kai Tak Approach Channel, the cruise terminal and multi-purpose stadium proposals.

We will consult the Legislative Council Panel on Planning, Lands and Works. Briefing sessions to statutory and advisory bodies, District Councils, professional institutes, concerned groups and business organisations will be held to get their comments on the OCPs. Briefing sessions to other interested parties could also be arranged upon request.

Comments received in the exercise will serve as input to the preparation of the Preliminary Outline Development Plan and to build public consensus on the relevant proposals.

Members of the public are welcome to visit the website for the Stage 2 Public Participation (http://www.pland.gov.hk) for more details.

Those who wish to give their views on the development of Kai Tak can fill in the form on-line via the website. Alternatively, they can submit views on line; by fax 2894 9502 or by post to the Kowloon District Planning Office, Planning Department, 14/F, North Point Government Offices, 333 Java Road. The deadline for submission is January 6, 2006.

2. Investors eye Kwun Tong potential
NG KANG-CHUNG, SCMP 9 November 2005

Investors are turning their gaze on Kwun Tong, where the Urban Renewal Authority (URA) is planning a $25 billion project to rejuvenate the ageing district and make it a commercial and retail hub for eastern Kowloon.

The new-look Kwun Tong could have, among many other highly contemporary features, underground streets for shopping modelled after those in Tokyo's Ginza district, tunnels for vehicles and an open-air amphitheatre.

The project could take up to 10 years or more to complete, the URA has said.

The first step in the project would be to clear the area between the Kwun Tong Government Offices building in Tung Yan Street and the nearby bus terminal.

The project - Hong Kong's biggest redevelopment ever - will cover about 5.1 hectares of land in the heart of Kwun Tong, bounded by the MTR station, Hong Ning Road and Hip Wo Street.

About 5,000 residents living in 23 run-down blocks dating from the 1950s would have to relocate. Compensation for residents alone could cost the URA more than $10 billion, according to initial estimates.

A huge rehousing exercise is also expected. One of the options under consideration is to offer affected residents flats under the Housing Authority home ownership scheme.

There are about 16,000 completed home ownership scheme flats lying idle following a government ban on sales that aims to shore up the private property market.

The URA has set up an advisory committee to gather the views of residents on what they would like Kwun Tong to become. This approach to redevelopment would entail several rounds of discussion before the project was approved.

Private developer Sun Hung Kai Properties (SHKP), which has a landmark office-cum-retailing complex opposite the redevelopment site, is set to benefit from the Kwun Tong facelift.

Property consultant Lau Chun-kong, a regional director at Jones Lang LaSalle, said: "Obviously, the project would help to boost the profile of Sun Hung Kai Properties. I would not be too surprised if the developer played a more active role in the redevelopment project."

SHKP has long been a key player in Kwun Tong.

In the 1990s, the company started on its Millennium City project, a complex with grade-A offices and stylish retail shops near the Kwun Tong MTR station.

At present, the developer is supplying about three million square feet, almost two-thirds of the district's total, of grade-A office space in Kwun Tong.

In March, SHKP opened its APM shopping mall in eastern Kowloon, which has received more than 40 million visitors so far. About 70 per cent of the visitors came from outside Kwun Tong.

The developer has a successful track record of adding value to old districts, one example being Chelsea Court, near the Tsuen Wan industrial area.

In September, SHKP bought a 155,600 sq ft site in Ngau Chi Wan, an old public housing estate area, for $4.23 billion.

"Kwun Tong has started to develop into a regional shopping and commercial centre," said Centaline Surveyors managing director Victor Lai.

"The district will see a dramatic revival with impetus from the redevelopment."

He said investors had their eye on the district, and the number of property transactions in the area has been on the rise. A 2,100 sq ft ground-floor shop lot at No 10 Tsun Yip Street, adjacent to the APM mall, recently sold for $10.5 million, according to Centaline Property Agency records. The lot was last traded at $6.5 million a year ago.

High-profile investor Lobo Law Ka-po recently bought several ground floor retail lots at Yue Man Square for $115 million, according to reports.

Maureen Fung, a general manager at Sun Hung Kai Real Estate Agency, said the big redevelopment project would brighten up Kwun Tong.

"We believe the redevelopment could benefit the whole district," she said.

The planning application for the Kwun Tong redevelopment is expected to be submitted to the Town Planning Board next year. The URA hopes to start acquiring properties by March 2007.

Once a booming industrial district, Kwun Tong was one of Hong Kong's first satellite towns.

Over the decades, however, it degenerated into one of the poorest districts. With a population of 570,000, Kwun Tong has become a focal point for the Commission on Poverty, a government body set up to explore ways to help deprived groups.

Elected Kwun Tong district council member Wilson Or Chong-shing, of the Democratic Alliance for the Betterment and Progress of Hong Kong, accused the URA of dragging its feet.

"We are disappointed that the authority chooses to have more talks but not start the redevelopment sooner," Mr Or said.

"The project has been discussed for decades and the views of the residents cannot be made clearer. Some residents fear they might have to stay in their run-down homes indefinitely if there continues to be all talk and no action."