Loft living may be a trendy concept of living in some overseas countries. But it is still a remote possibility in Hong Kong.
Hopes of home hunters keen on choosing industrial buildings for residential living were kindled in the light of new policy measures to facilitate redevelopment and wholesale conversion of existing industrial buildings.
Consumers, cautioned the Consumer Council, should be wary of being misled and the risks involved.
Subsequent to the launch of these measures, there have emerged marketing gimmicks that promoted the sale of industrial building premises with wording such as "loft living". As it turned out, the units were not for purpose of residential use.
Under the new measures, owners of industrial buildings in non-industrial zones may apply for lease modification under the redevelopment option. Alternatively, owners of industrial buildings of 15 years or over in some specified planning zones may apply for waiver (at a nil waiver fee) to permit wholesale conversion.
However, it should be noted that a great majority of industrial buildings - there are at present 1,467 industrial buildings in Hong Kong - cannot be used for residential purpose unless planning permission for re-zoning is applied and granted.
Although industrial buildings situated in "commercial" zones may apply for changing to residential use, such new use is not always permitted and approval by the Town Planning Board is required.
Even if planning permission has been obtained for non-industrial uses in an industrial building, the building cannot be used for purpose other than the permitted use specified under the lease and the owner has to apply to the Lands Department for lease modification or waiver for change of use.
Furthermore, building codes for domestic buildings are different from non-domestic buildings in respect of, for example, Gross Floor Area (GFA), appropriate lighting and air ventilation as well as fire safety.
To encourage redevelopment and wholesale conversion of industrial buildings, the Government has introduced a number of policy measures including:
- Lower application threshold for compulsory sale of industrial buildings aged 30 years or above and situated in non-industrial zones for redevelopment;
- "Pay for what you build": allowing tailor-made lease modifications for redevelopment of industrial buildings situated in non-industrial zones at premium based on proposed GFA of the redevelopment;
- Pay premium by installments if the premium payable for redevelopment exceeds $20 million;
- Nil waiver fee for wholesale conversion for industrial buildings situated in "Industrial", "Commercial" and "Other Specified Uses (Business)" zones and aged 15 years or above during the lifetime of the building or the current lease period (whichever is earlier).
Except the first in the above, other policy measures will be implemented through a 3-year scheme starting from April 1 this year.
Highlighted in the report, in this January issue of CHOICE, are a few non-compliant uses in existing industrial buildings, with enforcement actions taken by the Lands Department and Buildings Department, for attention of consumers.
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