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Developers and residents unhappy with decision as prices may decline by 20pc

The Town Planning Board yesterday moved to keep height restrictions at Kowloon Tong in the face of  opposition from developers and residents, saying the government needed to retain the unique character of the low-density residential district.

The board - which yesterday overruled objections from developers and residents who fear the tighter restrictions will cut deeply into land prices - said it would consider relaxing the restriction by 10 per cent if the development had design merit.

The board warned that Kowloon Tong would not be the only district in Hong Kong where the government body would impose tighter building controls.

'After the Grand Promenade issue, we will continue to review the development restriction of all districts, particularly the middle-density residential district,' said a spokeswoman for the board.

'It will take several years to impose development restrictions including building heights and development plot ratios for all districts.'

However, Charles Chan, a director at Savills, said the height restrictions were 'unfair' to developers.

'The taller the new development, the higher the achievable price,' Mr Chan said.

'Developers can build 25 and 30-storey residential buildings before the existing restrictions are imposed. But under the new rules, their development will be limited to between three and 13 storeys.

'I expect the price of new developments will drop by 20 per cent to 30 per cent. This is unfair for developers.'

Cheung Kong (Holdings), E2-Capital, Hanison Construction, Chinachem Group, Hong Kong Baptist University and 121 individual flat owners in  old buildings in the district submitted objections to the board over the restrictions.

City Planning Consultants managing director Iris Tam, whose company is the planning consultant for Cheung Kong, said it had sought to relax the  restrictions  on the ATV headquarters and Fortune Villa from 13 storeys to 20 storeys.

'Under the new rule, the projects will lose development value and open areas,' she said.

Individual flat owners of at least six old buildings in Kowloon Tong had planned to sell their properties by tender.

However, landlords at Lung Cheung Court, which had appointed Savills to handle the tender last year, dropped the sale after property agents suggested reducing their asking prices by 20 per cent because of the area's height restrictions.

'We sold Fortune Villa to Cheung Kong in 2004. But I don't think the old buildings marked for collective sale could be sold under the new rule,' said Colliers International investment director Willis Mak.

'The price for old buildings is likely to drop by 20 per cent and the asking prices of individual flat owners is already 20 per cent higher than  market value  which means  owners will have to slash their asking prices by 40 per cent.'

Under the new rule, the height of new buildings on  22 sites in and around College Road, Ede Road and Broadcast Drive will be limited to between three and 13 storeys.

The Town Planning Department has set up two special units to speed up the height restriction process.

A government source said the outline zoning plans that cover the sites on the application list would be reviewed.



Planning board keeps the lid on Kowloon Tong despite protests