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Peggy Sito

THE tremendous growth of Hong Kong's economy in recent years has led to a phenomenal structural change in its industrial sector.

  It has become evident that the manufacturing sector is moving toward high-technology and high-quality products.

  At the same time, the bulk of the territory's labour-intensive production processes are being relocated to mainland China and Southeast Asian countries.

  Such changes have resulted in a state of inequality between the supply and demand for industrial space in the territory, inevitably forcing the Government to widen the existing guidelines and design standards for new industrial areas.

  A study, aimed at reviewing the standards for new industrial land use, was commissioned by the Planning Department and begun in June last year.

  The study examines the current use of new industrial buildings and reviews the likely future accommodation needs of the industrial sector.

  Graeme Roberts, director of Townland Consultants, which was appointed by the planning authorities to conduct the extensive study, said the main purpose of the report was to develop layout standards and design guidelines for the future planning of new industrial areas.

  The study is in its final stage and expected to be completed in January.

  After 16 months of investigation, Townland Consultants have proposed six different land use types for the industrial sector.

  They are: general industrial use, industrial estate, business use, science park, rural-based industrial use and other industrial uses with special requirements.

  Of these, the business use and science park categories are the more innovative concepts suggested by the consultants.

  'It (business use) would accommodate industries and activities which have a need for flexible 'business' premises,' said the study.

  Business use includes both business estates and business centres.

  A business estate is similar to a business park, a concept known in the United States, United Kingdom, Singapore and Malaysia.

  These are primarily intended for new industrial areas which have a clean and desirable environment and which offer flexibility in meeting users' requirements. The lot size for a business estate ranges from 37,674 to 51,667 square feet. It has a restricted plot ratio of five times.

  This type would include a mix of industry-related office uses, research and development, distribution, trading, light-manufacturing and assembly.

  Business centres, proposed for certain locations in existing industrial areas, would act primarily to support industrial renewal and restructuring initiatives.

  The size of the site area in a business centre, however, is smaller than that of a business estate. Lots measure from 21,528 sq ft to 30,677 sq ft and plot ratio is 12.

  The study suggested that business centres allow a mix of industry-related office uses and hi-tech production uses.

  Business centres can also accommodate ancillary commercial/recreational and hotel/service apartment facilities in order to serve the general workforce and business visitors.

  Paul Anderson, director of Colliers Jardine's industrial agency, said the scarcity of land in Hong Kong made it difficult to offer a huge amount of land for business estate development.

  'I wonder where they would build it,' he said.

  If the Government wanted to launch the concept in Hong Kong, it should set up corporations like the Hong Kong Industrial Estate Corp to provide developers with sites at below market prices, he said.

    Mr Anderson said the business park concept was also aimed at attracting multi-national industrial conglomerates.

    Regarding science parks, the core activities would be research, new technology, and product development.

  Science parks would be served by high quality ancillary uses, including commercial and recreational activities   The main use of floor space would be for specialised laboratories, storage, administration offices and business areas.

  Some consultants said the study was a more extensive review aimed at widening land use in industrial areas, following the introduction of the 'Industrial-Office Building' concept in late 1989.

       An I/O building is defined as a dual-purpose building in which every unit can be used for both industrial and office purposes.

  I/O buildings, which were once welcomed by the market, have recently failed to attract support from developers and the business community.

  Analysts said that users were unwilling to pay a higher rent for office space in I/O buildings if they had the option of moving into purely industrial buildings.

  Up to 30 per cent of the space in an industrial building can now be used for ancillary office uses.

  Townland's study suggested that this be increased by 20 per cent.

  Other land use types suggested by the consultants include industrial uses which are aimed at the general manufacturing industry.

  A mix of ordinary multi-storey factory buildings, I/O buildings and general warehouses apply to this sector.

  Industrial estates, which already exist here, would be addressed under hi-tech industrial activities.

  The rural based industrial use category would serve to accommodate mainly low-overhead industrial activities employing production processes which cannot, for operational reasons, be accommodated in multi-storey industrial buildings.

   Planning Department Senior Planner Christine Tse said the proposals suggested by Townland would be considered by relevant departments and committees within the Government after the study was completed in January 1996.

  Will the Government create a higher degree of flexibility in the guidelines and standards for new industrial areas?   Whether the business park concept will be introduced in Hong Kong is expected to remain unknown until next year, she said.



Land review nears finish