The changing face of the Tung Tau areaProperty | Staff reporter 23 Sep 2021
Close to Long Ping MTR Station, Tung Tau Industrial Area in Yuen Long is transforming into a mixed-use neighborhood as developers rebuild their industrial premises into residential buildings to catch up with the market demand.
More than 1,200 new flats will be available in the Tung Tau area in the next few years, and the new district is growing to house at least 3,000 homes in total.
The latest land tender at Tung Tau has quickened the transformation. CK Asset (1113) won a residential site for HK$716 million, or HK$9,112 per buildable square foot - 14 percent above market estimates.
Sitting at the junction of Lau Yip Street and Chung Yip Road, the site covers 163,699 square feet with a maximum gross floor area of 78,575 square feet.
The developer plans to build 112 two-story garden houses by the end of June 2026 - the required completion date as stated in the conditions of sale.
Meanwhile, the Lai Sun Yuen Long Centre at 21-35 Wang Yip Street East was the first industrial building to be reconstructed as apartments after approval by the Town Planning Board in late August.
The industrial building, co-owned by Lai Sun Development (0488) and CSI Properties (0497), has a site area of 78,000 square feet with gross buildable floor area of 408,500 square feet.
It is expected to build two 24-story towers providing 828 flats, and one non-residential tower with a floor area of 17,000 square feet.
The residential project will mainly consist of small-to-medium-sized units, said Julian Poon Yui-man, senior vice president at the Lai Sun Group. The company initiated the reconstruction of the center due to growing housing demand and the development potential brought by its proximity to the MTR station - eight minutes in walking distance.
Another industrial site at 21 Wang Yip Street West owned by Star Properties (1560), formerly the FedEx World Service Center, has also changed its land use to residential.
The company decided to change use after considering the difference in income of industrial and residential projects, as well as the home-buying demand in the city, said executive director Joe Chan Man-fai.
The site will be redeveloped into a mixed-use property after the land premium is paid.
With more than 150,000 square feet of floor area, the project is expected to put more than 300 flats on the market next year, mostly small to medium-sized.
The transformation of Tung Tau Industrial Area is nearing an end, said Chan, as residential and commercial projects have been completed one after the other.
He said the government had been developing the north-west part of the New Territories in recent years, which gave him high expectations for the future development of Yuen Long, especially the Tung Tau area.
On the other hand, new commercial projects in the area have opened, such as The Rainbow, developed by Star Properties.
Another project developed by Sino Land (0083) at the junction of Wang Yip Street West and Hong Yip Street is expected to be completed soon. It will be a grade A office building with buildable floor areas of about 497,000 square feet. The developer bought the site in 2015 for HK$1.69 billion, or HK$3,396 per square foot of floor space.
The Denker Plaza at 16 Hi Yip Street has got approval from the Town Planning Board to be rebuilt as an office block. The landlord also applied to increase 15 percent of the gross floor areas to 192,000 square feet for more commercial floor areas and public car parks.