A 1,000-ROOM landmark hotel in Hong Kong’s New Territories is slated to be converted into 5,000 units, mostly nano-flats in what may be the largest private housing estate in the city to be built in the last decade.
The developer of the Habour Plaza Resort City hotel, CK Asset Holdings, recently filed an application with the Town Planning board to transform the accommodation facility into two blocks of 53-story residential buildings.
The hotel, which opened in 1999, has 1,100 guest rooms that cater mostly to tourists from the mainland, expatriates, and airline crews.
If approved, the re-development would squeeze some 50 units per floor. According to the South China Morning Post, the project would also have the dubious honour of becoming the city’s most densely packed private residential development.
It will also beat Kowloon Development’s Upper East in Hung Hom, which fits 36 units on a single floor.
The entire hotel would cover gross floor areas of up to 185,817 square meters (2,000,117 square feet) while the 5,000 flats would be spread across 47 floors in each converted building.
“It will be a single private housing estate by one developer with the largest number of units in the past 10 years,” said Vincent Cheung, a veteran surveyor was quoted as saying
“There’s a good chance it will get approved as it could help increase the housing supply in the short run.”
Hong Kong’s surging property prices have created a rising demand for nano flats, small apartment units below 180 square feet, which is equivalent 1.5 times of a standard car parking space, according to ejinsight.
Over the last decade, Hong Kong’s property development has been booming while the hotel is said to be a low-yield business. However, the residential market has shown signs of cooling in the last quarter due to economic factors.
Observers said the timing of the project is good as the government missed its 2018/2019 land supply target of providing 18,000 private units by almost a quarter.
In the application, the developer, which is Hong Kong’s second-largest builder by market capitalisation said that the development is “totally in line with the government’s latest policies to increase housing land supply.”
Previously, CK assets developed the massive Kingswood Villas comprising 15,800 units in Tin Shui Wai.
Another analyst said the project was “too exaggerated”.
“Of course, the more homes the developer subdivides from the existing hotel rooms, the more they can get,” Alvin Cheung Chi-wai, associate director at Prudential Brokerage, was quoted as saying