Private builder Nan Fung Development hopes to convert its Tsuen Wan serviced apartment project to residential use in anticipation of an improving housing market.

Last year the 24,000-square foot site won Town Planning Board approval for two towers, one of 47 storeys and the other 60, providing 1,552 serviced apartments, which are operated similar to hotels.

Sources said the developer was considering converting the site into residential use, but surveyors said there would be difficulties getting consent from relevant government departments. It was next to an industrial building and conversion to residential use was against its planning intention and might spark environmental and pollution concerns.