The Town Planning Board's preliminary proposal was to convert about 5 ha of industrial land in the area.

In the latest proposal, 12 ha of industrial land in south Castle Peak Road, Cheung Sha Wan, will be converted to business use. The industrial lots at the north end of the road will remain zoned for industrial use.

Landlords of industrial buildings at the northern end of Castle Peak Road hoping to convert properties to data centres or offices will meet resistance, following the board's decision.

Henderson Land Development recently applied to convert its industrial building in Wing Hong Street to office use. Its proposal was deferred because of the undetermined land use in the area.

Surveyors expect the board's decision to spark controversy among landlords in the area.

Landlords of industrial buildings at the southern end of Castle Peak Road were expected to explore the new proposal and opportunities of redeveloping properties.

But landlords of office buildings could be concerned about the redevelopment trend, one surveyor said, especially as the anticipated increase of office supply in the area might result in a fall in value of office buildings.

The surveyor said industrial-property owners would continue to have a say in the redevelopment of office supply in the area.

Sources said some government departments expressed concern over pedestrian safety along Castle Peak Road if redevelopment in the area and the associated road works took place at the same time.

Over the past six months, the Town Planning Board has proposed converting industrial lots in old industrial areas, including Kwai Chung, Tsing Yi, Tai Kok Tsui, Kowloon Bay and San Po Kong, to business use to make better use of surplus industrial land.

Landlords objected to most proposals. Some landlords, hoping to convert their properties to residential use, said business zoning would dampen prospects of preferred redevelopment.