The Real Estate Developers Association (Reda) will challenge the Government's scrapping of serviced apartments from the land-use list because it tightens controls on development.
Sources said the association would probably lodge a complaint with the Government on the guidelines issued by the Town Planning Board last month.
The guidelines reversed the board's former decision in September to allow developers to proceed with serviced-apartment projects that were comparable in design to hotels.
Sources said Reda felt the Government should not cancel 'serviced apartment' for the sake of 'technical difficulty' involved in enforcement. They said it should instead try to solve the difficulty.
The removal of serviced apartment from the land-use list is causing discontent, especially from developers applying to build such properties on their sites.
One project affected is a 16,502-square-foot site in King's Road, North Point. The site is owned by Lai Sun Group major shareholder Lim Por-yen, who had earlier stated the group intended to build a serviced apartment on the lot.