Standard rate for industrial building redevelopment starts mid-March

The rates range from $20,000-$130,000 per square metre, depending on the region and use.

The Development Bureau (DEVB) will start imposing land premiums at standard rates for the redevelopment of industrial buildings on 15 March.

The pilot scheme, which will apply to industrial buildings built before 1987, will run for two years.

"The pilot scheme targets pre-1987 industrial buildings for revitalisation because they were constructed before the Fire Services Department tightened the fire safety requirements in 1987,” a DEVB spokesperson said. “These buildings have relatively less adequate fire service installations and could pose safety risks to IB users and society.”

There are varying standard rates for five regions in Hong Kong and three types of usage in lease modifications for industrial buildings such as industrial of godown use before redevelopment, commercial or modern industrial, and residential use after redevelopment.

DEVB explained the standard rates is intended to enhance the certainty on land premiums payable to expedite revitalisation of industrial buildings.

“If lease modification applicants do not find it attractive to have land premiums calculated at standard rates, they may opt to have their cases processed using the existing conventional approach for land premium assessment,” the spokesperson also said.

The breakdown of standard rates are as follows:

Hong Kong Island

• Industrial/godown (before use): $40,000/sqm
• Commercial/Modern Industrial (after use): $75,000/sqm.
• Residential (after use): $130,000/sqm

Kowloon East

• Industrial/godown (before use): $40,000/sqm
• Commercial/Modern Industrial (after use): $65,000/sqm.
• Residential (after use): $100,000/sqm

Kowloon West

• Industrial/godown (before use): $35,000/sqm
• Commercial/Modern Industrial (after use): $60,000/sqm.
• Residential (after use): $110,000/sqm

New Territories South

• Industrial/godown (before use): $35,000/sqm
• Commercial/Modern Industrial (after use): $50,000/sqm.
• Residential (after use): $75,000/sqm

New Territories North

• Industrial/godown (before use): $20,000/sqm
• Commercial/Modern Industrial (after use): $30,000/sqm.
• Residential (after use): $55,000/sqm