Property analysts say the simplified standard waiver fees for converting under-used industrial premises into commercial properties are too high.
Centaline Property Agency's project and investment general manager Nelson Szeto said the new rates of up to HK$260 per square foot set by the Lands Department for lifetime waivers in urban areas exceeded the level that the market would find acceptable.
Charges for sites in the New Territories were more reasonable, he said.
He expected the standardised rates would encourage more landlords in the New Territories, especially in Yuen Long, to convert their premises because office rentals there were much higher than those for industrial premises.
Mr Szeto suggested the government reduce the administrative fees for the waiver applications as the simplified process would take less than two months compared with six to nine months previously.
A reasonable administrative fee would be about HK$7,000, compared with HK$22,100 at present, he said.
The government could also extend the deal to godowns in industrial areas, he said, since the building designs of some obsolete godowns were particularly suitable for private clubs or art studios where there was potential market demand.
