4 Findings of “OU(B)” Area

Land Area, Numbers of IBs and GFA

4.1 19 out of the 75 industrial areas covered in 2014 Area Assessments are “OU(B)” areas in the territory (Plans 1 and 2). They include four areas in Island, six areas in , five areas in Kwai Tsing/, and two areas each in NENT and NWNT. In total, the 19 areas cover about 198.6 ha (about 39.0%) of the industrial land with 788 (about 54.4%) existing IBs providing a total GFA of about 15.16 million m2 (about 54.4%), all representing a reduction as compared with 2009 Area Assessments which covered about 200.1 ha of land, 813 IBs and about 15.37 million m2 GFA (Appendix 4.1).

4.2 In terms of land area by region, Kowloon remains to have the largest share (about 106.6 ha or 53.6%), followed by Kwai Tsing/Tsuen Wan (about 52.6 ha or 26.5%) and (about 15.8 ha or 7.9%) (Figure 4-1 and Appendix 4.1). By “OU(B)” area, Kwun Tong (about 45.7 ha) has the largest land area, followed by /Wo Yi Hop Road (about 22.9 ha) and (about 22.4 ha).

4.3 In terms of number of IBs by region, Kowloon is also the largest provider (508 buildings or 64.5%), followed by Kwai Tsing/Tsuen Wan (147 buildings or 18.7%) and Hong Kong Island (92 buildings or 11.7%) (Figure 4-1 and Appendix 4.1). By “OU(B)” area, Kwun Tong has also the largest number of buildings (247 buildings), followed by (100 buildings) and Castle Peak Road/Wo Yi Hop Road (71 buildings).

4.4 In terms of GFA by region, Kowloon is also the largest provider (about 8.06 million m2 or 53.2%), followed by Kwai Tsing/Tsuen Wan (about 4.48 million m2 or 29.6%) and Hong Kong Island (about 1.41 million m2 or 9.3%) (Figure 4-1 and Appendix 4.1). By “OU(B)” area, Kwun Tong has also the largest amount of GFA (about 3.26 million m2), followed by Castle Peak Road/Wo Yi Hop Road (about 1.83 million m2), Cheung Sha Wan (about 1.56 million m2), Road (about 1.24 million m2), San Po Kong (about 1.16 million m2) and Kowloon Bay (about 1.11 million m2).

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Figure 4-1 Distribution of “OU(B)” Area in terms of Land Area, No. of IBs and GFA

Land Area 7.9% 53.6% 26.5% 6.6% 5.3% (198.6 ha)

No. of IBs 2.3% 11.7% 64.5% 18.7% (788) 2.9%

GFA 4.8% 9.3% 53.2% 29.6% (15.16 M m2) 3.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HK Island Kowloon Kwai Tsing/Tsuen Wan NENT NWNT

Building Ownership, Age and Condition

4.5 788 out of 1,448 IBs covered in 2014 Area Assessments are in “OU(B)” area. In terms of ownership, about 74.2% or 585 buildings are under multiple ownership, while the remaining 25.8% or 203 buildings are under single ownership (Figure 4-2). Compared with the findings in 2009 Area Assessments, there is higher percentage of buildings under multiple ownership (about 71.5% in 2009). Spatially, more buildings in both the Metro area and NT are under multiple ownership.

4.6 On building age, about 66.1% or 521 buildings are 30 years or above which are much higher than 54.5% in the 2009 Area Assessments (Figure 4-2). About 31.2% or 246 buildings are between 15 and 29 years which are lower than 34.3% in the 2009 Area Assessments. About 2.5% or 20 buildings are below 15 years old with 11 buildings of five years old or less (i.e. completed after the 2009 Area Assessments). Three of them are in Cheung Sha Wan, two each in Tai Kok Tsui, Kwun Tong and Kok, and one each in Castle Peak Road/Wo Yi Hop Road and Kwai Chung Road.

4.7 For the building condition, about 72.3% or 570 buildings are in fair condition which is lower than 79.6% in the 2009 Area Assessments (Figure 4-2). About 15.9% or 125 buildings are in good condition which is higher than 14.6% in 2009 Area Assessments. 63 out of the 125 buildings are in Kwun Tong. The remaining 11.8% or 93 buildings are in poor condition which is higher than 5.8% in 2009 Area Assessments. 36 and 20 out of the 93 buildings are in Kwun Tong and Tai Kok Tsui respectively.

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Figure 4-2 Ownership, Age and Condition of IBs in “OU(B)” Area

Ownership

2014 (788 IBs) 25.8% 74.2%

2009 (813 IBs) 28.5% 71.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Single Multiple

Age

2014 (788 IBs) 2.5% 31.2% 66.1%

2009 (813 IBs) 11.2% 34.3% 54.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <15 yrs 15-29 yrs >=30yrs No Information

Condition

2014 (788 IBs) 15.9% 72.3% 11.8%

2009 (813 IBs) 14.6% 79.6% 5.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Good Fair Poor

Vacancy and Take-up

4.8 The overall vacancy of the 788 IBs in “OU(B)” area based on GFA is about 6.0% or 0.91 million m2 GFA which is lower than the 8.4% or 1.29 million m2 identified in the 2009 Area Assessments (Appendices 4.1 and 4.2).

4.9 The vacancy rates of individual “OU(B)” areas vary. Seven areas are above the overall rate of 6.0%, including Tai Kok Tsui (about 11.0%), Chai Wan Kok (about 11.0%), (about 9.8%), Kwun Tong (about 9.5%), Chai Wan East (about 7.6%), Shek Mun (about 6.6%) and Kwai Chung Road (about 6.5%) (Figure 4-3 and Appendices 4.1 and 4.3). The high vacancy in Tai Kok Tsui, Chai Wan Kok, Kwun Tong and Kwai Chung Road is partly due to existence of wholly vacant IB(s) in the areas.

4.10 Very low vacancy rate of less than 1.0% is identified in three areas, including Tai Po (about 0.6%), (about 0.8%) and (about 0.9%).

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Figure 4-3 Vacancy Rates of Individual “OU(B)” Areas Based on GFA

12% 11.0% 11.0% 9.8% 10% 9.5%

7.6% 8% 6.5% 6.6% 5.7% 6% 4.8% 4.6% 4.1% 4.1% 4.1% 4% 3.2% 2.3% 1.9% 2% 0.9% 0.6% 0.8%

0%

* areas with wholly vacant building(s)

4.11 Derived from the R&VD’s records and based on the BD’s Monthly Digests, the overall take-up of the IBs in all “OU(B)” areas for 2013 is about -85,817m2, meaning a net decrease in occupied GFA in 2013 as compared to 2012. The negative take-up mainly comes from Kwun Tong (about -76,753m2), Kwai Chung Road (about -46,957m2), Castle Peak Road/Wo Yip Hop Road (about -29,351m2), Shek Mun (about -27,672m2) and Wong Chuk Hang (about -20,583m2) (Appendices 4.1 and 4.2).

Usage

4.12 Same as the 2009 Area Assessments, Warehouse/Storage is the largest user in the IBs in “OU(B)” area, followed by Office and Manufacturing/Workshop (Figure 4-4 and Appendix 4.3).

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Figure 4-4 Distribution of Uses in “OU(B)” Area Based on GFA Manufacturing/ Workshop 6.8%

Non-response Under Renovation 15.8% 1.9% Vacant 6.0% Warehouse/Storage Other Uses 33.3% 6.2%

Office 30.0%

4.13 Being the largest user in the “OU(B)” area, Warehouse/Storage occupies about 33.3% or 5.04 million m2 of the existing GFA (Figure 4-4). The figures are slightly higher than the 32.4% and 4.98 million m2 identified in the 2009 Area Assessments (Appendix 4.3). The use is the predominant use in 12 out of the 19 areas (except the six areas in Kowloon and Tsuen Wan Texaco Road). 11 areas have more than 33.3% of their GFA for Warehouse/Storage use (Figure 4-5). Spatially, the Warehouse/Storage GFA is mainly concentrated in Castle Peak Road/Wo Yi Hop Road, followed by Kwun Tong and Kwai Chung Road (Figure 4-6). Castle Peak Road/Wo Yip Hop Road alone takes up about 20.5% (1.03 million m2) of all Warehouse/Storage GFA in the “OU(B)” area.

Figure 4-5 Warehouse/Storage GFA in “OU(B)” Area (in %)

80% 77.8%

70% 61.3% 60% 56.4% 56.9% 55.5% 50.8% 50% 44.4% 39.2% 37.8% 36.3% 40% 34.0% 31.6% 26.9% 27.8% 28.0% 30% 25.9% 25.0% 17.4% 20% 13.3% 10% 0%

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Figure 4-6 Warehouse/Storage GFA in “OU(B)” Area (in m2)

1,200,000

1,000,000

800,000

600,000

400,000 200,000

0

4.14 Office is the second largest user and occupies about 30.0% or 4.55 million m2 of the existing GFA in the “OU(B)” area (Figure 4-4). The figures are lower than the 33.8% and 5.20 million m2 identified in the 2009 Area Assessments (Appendix 4.3). Eight areas have more than 30.0% of their GFA for Office use (including all six areas in Kowloon, Shau Kei Wan and Tsuen Wan Texaco Road) (Figure 4-7). The Office GFA is concentrated in Kwun Tong and Cheung Sha Wan (Figure 4-8). These two areas take up about 42.0% (1.91 million m2) of all Office GFA in the “OU(B)” area.

Figure 4-7 Office GFA in “OU(B)” Area (in %)

60% 51.6% 50% 47.5% 39.7% 40% 35.8% 33.8% 32.4% 30.4% 30.1% 30% 27.8% 24.2% 20.0% 20.4% 18.5% 18.5% 18.1% 20% 16.3% 10.9% 10% 7.0% 4.5% 0%

Figure 4-10 Office GFA in “OU(B)” Area (in m2)

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Figure 4-8 Office GFA in “OU(B)” Area (in m2)

1,200,000

1,000,000

800,000

600,000

400,000 200,000

0

4.15 Manufacturing/Workshop takes up about 6.8% or 1.04 million m2 of the existing GFA in the “OU(B)” area (Figures 4-4). The figures are lower than the 7.4% and 1.13 million m2 identified in the 2009 Area Assessments (Appendix 4.3). Eight areas have more than 6.8% of their GFA for Manufacturing/Workshop use (Figure 4-9). The Manufacturing/Workshop GFA is mainly in Kwun Tong, Castle Peak Road/Wo Yi Hop Road and Chai Wan Kok (Figure 4-10). These three areas take up about 38.4% (0.40 million m2) of all Manufacturing/Workshop GFA in the “OU(B)” area.

Figure 4-9 Manufacturing/Workshop GFA in “OU(B)” Area (in %)

25% 22.3% 20.8% 20% 18.9%

15%

10.8% 10.9% 10.8% 10% 8.9% 6.8% 6.6% 6.9% 5.5% 5.5% 5.1% 4.7% 4.8% 4.0% 4.1% 5% 3.5% 3.1%

0%

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Figure 4-10 Manufacturing/Workshop GFA in “OU(B)” Area (in m2)

180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

4.16 Apart from Warehouse/Storage, Office and Manufacturing/Storage, “Other Uses” are commonly found in “OU(B)” area. They occupy about 6.2% or 0.94 million m2 GFA (Figures 4-4). The figures are much higher than the 3.5% and 0.53 million m2 identified in the 2009 Area Assessments (Appendix 4.3). The percentages are particularly high in Chai Wan East (about 19.8% mainly for data centre), followed by Kowloon Bay (about 11.4% mainly for showroom and research and development/testing centre) (Figure 4-11). In terms of GFA, the “Other Uses” are mainly concentrated in Kwun Tong, Cheung Sha Wan and Kowloon Bay (Figure 4-12). These three areas take up about 56.1% (0.53 million m2) of all “Other Uses” GFA in the “OU(B)” area.

Figure 4-11 “Other Uses” GFA in “OU(B)” Area (in %)

25%

19.8% 20%

15% 11.4% 9.6% 10.0% 10% 7.5% 7.5% 6.7% 6.0% 5.4% 5.9% 4.7% 5.1% 5% 3.0% 3.2% 3.5% 2.3% 2.1% 2.4% 0.5% 0%

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Figure 4-12 “Other Uses” GFA in “OU(B)” Area (in m2)

300,000

250,000

200,000

150,000

100,000 50,000

0

4.17 Regarding the types of “Other Uses”, about 25.4% or 0.24 million GFA is for showroom (mainly in Kwun Tong, Kowloon Bay, Cheung Sha Wan and ), followed by shop and services (about 18.5% or 0.17 million m2 mainly in Kwun Tong, Cheung Sha Wan and San Po Kong), research and development/testing centre (about 9.9% or 93,017m2 mainly in Kowloon Bay and Cheung Sha Wan), studio (about 9.0% or 84,801m2 mainly concentrated in Kwun Tong and Chai Wan Kok) and data centre (about 8.4% or 78,733m2 mainly concentrated in Chai Wan East, Castle Peak Road/Wo Yi Hop Road and Wong Chuk Hang) (Figure 4-13 and Appendix 4.3).

Figure 4-13 Types of “Other Uses” in “OU(B)” Area Based on GFA (in %)

Religious Institution Domestic Use 2.3% 4.1% Others Training Centre/Educational 5.9% Institution 2.8% Recreational Facilities Showroom 2.9% 25.4%

Eating Place 7.9% Research and Development/Testing Centre Shops and Services 9.9% 18.5%

Data Centre 8.4% Studio 9.0% Wholesale Centre Call Centre 0.9% Gallery 0.3% 1.8%

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Extent of Subdivision

4.18 Out of the total of 58,021 units in the 19 “OU(B)” areas, about 5.2% or 3,013 units in 14 “OU(B)” areas are found subdivided, involving a total of about 10.6% or 1.60 million m2 of the GFA. Most of these units are divided into two to five subdivided units and most of the IBs involved are under multiple ownership. The extent of subdivision is relatively larger in Hung Hom, Tai Kok Tsui, San Po Kong and Kwun Tong than in other ten areas (Figure 4-14).

Figure 4-14 Units Subdivided and GFA Involved in Respective “OU(B)” Areas

23.9 24.1 25

20 18.2 18.1 15.2 15 13.4 13.0 10.1 10 8.0 6.4 6.8 7.16.8 7.1 7.0 5.6 4.9 3.5 3.6 5 2.1 2.6 2.5 2.5 1.7 1.3 1.4 0.5 1.2 0 Wong Chai Wan Chai Wan Tai Kok Cheung Hung San Po Kowloon Kuwn Castle Kwai Chai Wan Tsing Yi Tuen Chuk East Tsui Sha Wan Hom Kong Bay Tong Peak Chung Kok Mun Area Hang Road/Wo Road 9 Yi Hop Road % of Units Subdivided % of GFA Involved

Approvals for New Development and Redevelopment/Wholesale Conversion in Last Five Years

4.19 In the last five years (from January 2009 to April 2014), 100 sites in 14 “OU(B)” areas have obtained one or more of the following four kinds of approvals for new development or redevelopment (including wholesale conversion) of old IB for non-industrial use (Appendix 4.4):

(a) planning approval granted by the Board under the Town Planning Ordinance (29 sites involved); (b) building plan approval granted by the Building Authority under the Buildings Ordinance (28 sites involved); (c) approval for wholesale conversion of existing IB with special waiver executed under Revitalisation Policy (48 sites involved); (d) approval for redevelopment of old IB with lease modification executed under Revitalisation Policy (four sites involved); and (e) approval for new development or redevelopment with lease modification executed not under Revitalisation Policy (21 sites involved).

In terms of use, 99 of the sites are for commercial uses (including office, hotel, shop and services and eating place), while the remaining site is for data centre. Spatially, 45 of the sites are in Kwun Tong, 12 in Wong Chuk Hang, nine each

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in Cheung Sha Wan and Castle Peak Road/Wo Yi Hop Road, six in Kowloon Bay, four each in San Po Kong and Kwai Chung Road, three each in Tai Kok Tsui and Shek Mun, and one each in Shau Kei Wan, Chai Wan, Hung Hom, Chai Wan Kok and Yuen Long. Based on the survey of 2014 Area Assessments, 20 sites have the proposed non-industrial uses/developments completed, while works for 33 sites are under progress. The approvals for the remaining 47 sites have not yet been taken forward.

4.20 During the same period, 17 sites in nine “OU(B)” areas have obtained building plan approvals for new development or redevelopment for industrial use (Appendix 4.5). Spatially, four of the sites are in Cheung Sha Wan, two each in Wong Chuk Hang, San Po Kong, Tai Kok Tsui, Kwun Tong and Chai Wan Kok, and one each in Kowloon Bay, Kwai Chung Road and Castle Peak Road/Wo Yi Hop Road. Based on the survey of 2014 Area Assessments, eight sites have the proposed industrial developments completed, while works for four sites are under progress. The approvals for the remaining five sites have not yet been taken forward.

Assessments of Individual Areas

4.21 Detailed assessments of the 19 individual “OU(B)” areas are at Appendix 4.6.

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