Developers may turn to older buildings in other districts after Mid-Levels restrictions
Old buildings in Western, Kennedy Town and Wan Chai will be the next acquisition targets of developers after the government imposed building height restrictions in Mid-Levels last week, property analysts say.
Developers have aggressively targeted old buildings in luxury residential areas for redevelopment in recent years, with Mid-Levels a favoured location.
However, their hopes of cashing in by significantly increasing the saleable gross floor areas of the redevelopments were dashed last week when the Town Planning Board imposed height limits in the area.
Under the restrictions, buildings will be limited to heights of between 170 and 320 metres.
A developer affected by the new rule is Cheung Kong (Holdings), which acquired the 28-storey Lodge on the Park in Kennedy Road for redevelopment last year.
The company is believed to have wanted to build a high-rise tower on the site but is now restricted to keeping the building to its existing height.