San Po Kong industrial asset on market with redevelopment prospects

The site covers about 5,700 sq ft and is designated for industrial and/or godown use.

An industrial site at No. 3 Luk Hop Street in San Po Kong, Kowloon East has hit the market, with sole agent CBRE highlighting its potential for redevelopment into hotel and student accommodation.

The site covers about 5,700 square feet (sq ft) and is designated for industrial and/or godown use under the land lease.

The Town Planning Board has approved an increase in plot ratio from 12 times to 14.4 times, allowing a maximum gross floor area of about 82,080 sq ft, with foundation works having been completed.

The property is located about a five-minute walk from Diamond Hill MTR Station, an interchange on the Tuen Ma Line and Kwun Tong Line of the MTR, with connections to the Shatin to Central Link.

The group said that it provides access to Hong Kong Polytechnic University, City University of Hong Kong, Hong Kong Baptist University, Hong Kong Metropolitan University, and the Hong Kong University of Science and Technology via public transport links.

The site is eligible for application under the standard land premium policy to change land use for hotel development, supporting redevelopment for student accommodation operations.

Joseph Wong, Associate Director of Capital Markets for CBRE Hong Kong, said that demand for student housing in the region has increased in recent years, supported by policy efforts to develop the city as an international education hub.

Wong added that hotel occupancy has recovered to over 90%, whilst conversions of hotels into student housing have reduced tourist room supply.