High-rise office and hotel blocks with shops at lower levels will dominate Kwun Tong town centre after a decade-long redevelopment, Urban Renewal Authority managing director Billy Lam Chung-lun said yesterday.
Speaking at the launch of a two-month public consultation on the design of the redevelopment, Mr Lam stressed the design was intended to make the 'risky' project attractive to property developers.
The latest estimate is that the redevelopment of the town centre will cost about HK$30 billion - with half of this going on the resumption of property rights.
It has been dubbed the most expensive and complicated project the authority has handled. Its profit will be 6 to 7 per cent.
'The profit margin is going to be slim and if there is any property downturn, we will be in trouble,' Mr Lam said.
The project will be built in phases and the authority wants to start buying properties after it obtains Town Planning Board approval next March.
There will be five residential blocks between 30 and 40 storeys at the northern part of the town centre, providing 2,000 flats. Yue Man Square will become a park and a pedestrian area surrounded by government facilities, shops and offices. But the authority refused to disclose the height of the office blocks and the exact proportion between residential and commercial development.