The largest redevelopment project by private home builders - costing more than HK$10 billion for one million square feet of gross floor area - is taking place in Hung Hom, where urban residential lots are scarce.
The redevelopment project is in full flow after Henderson Land (0012) completed the acquisition of old buildings on Whampoa Street and its surroundings, including Gillies Avenue South, Bulkeley Street and Baker Street.
It is expected to offer about 2,600 flats. The first phase of the project is to put 300 flats on the market as soon as the end of this year.
The property giant is also working on the second-largest private redevelopment project in Tai Kok Tsui.
That has a gross floor area of one million square feet and involves changing land use of industrial buildings to residential. It has been transformed into the "Square Mile," consisting of seven phases, with three of them launched on the market.
Thomas Lam Tat-man, sales executive at Henderson Land, said the first phase of the Hung Hom project will be on Gillies Avenue South. It ranges from studio units to three-bedroom units and involves a gross floor area of 120,000 square feet.
It will be a mixed-use project, with a shopping mall under the residential blocks. To preserve Hong Kong's culture in the old district, Lam expects that the mall will be introducing some small shops in the area.
Henderson has been buying old buildings around Whampoa Street since 2011. Among its 13 acquisition projects in Hung Hom, 12 have been completed and are under unified ownership - meaning a possible redevelopment.
Eight of the ownerships are unified via compulsory auction, costing nearly HK$9.9 billion.
The only project left to be acquired sits at 18 to 20A Whampoa Street, since the minority homeowners there are holding more than 20 percent, which prevented Henderson from taking over the buildings through a compulsory sale for redevelopment.
The unprecedented redevelopment in Whampoa Street is in full swing. The annual report of the developer said the site of the redevelopment project covers 112,000 square feet, with a gross floor area of more than one million square feet.
Close to the Ho Man Tin, Whampoa and Hung Hom MTR stations, the site is going to be transformed into an eco-friendly community in phases.
The project is full of greenery and outdoor terraces for cultural and leisure activities, resulting in the previously dilapidated district being revitalized into a vibrant neighborhood, said the developer in the report.
Looking at the big picture, the developer is involved in redevelopment projects across Hong Kong. A total of 23 old building projects has passed the more than 80 percent of the property ownership mark, making a compulsory sale for redevelopment possible.
Near Whampoa Street in Hung Hom, it has been acquiring old buildings along To Kwa Wan Road, Lok Shan Road, Ha Heung Road and Lai Wa Street, covering 43,506 square feet with a gross floor area of more than 374,400 square feet.
Then there is the Bailey Street / Wing Kwong Street development project, for which the developer won the tender from the Urban Renewal Authority for HK$8.19 billion.
The annual report also shows that 28 ongoing projects in the urban area cover 20 to 80 percent of the ownership, which will provide a maximum of 1.71 million square feet in gross floor area.