The Policy Backdrop

As Hong Kong's manufacturing base declined, many older industrial buildings found their original use increasingly out of step with market demand. The government introduced successive measures to revitalise industrial buildings, encouraging owners to convert or redevelop entire old factory blocks for office, commercial, cultural-creative and other non-polluting uses. The policy aims, on one hand, to unlock idle floor space and expand commercial supply, and on the other, to give emerging industries a lower-cost foothold. This policy thrust is the context for understanding the transformation of the West Kowloon and Kowloon East submarkets.

West Kowloon: Cheung Sha Wan and Lai Chi Kok

In West Kowloon, the Cheung Sha Wan and Lai Chi Kok belt is emblematic of industrial conversion. With proximity to the urban core, improving transport links and relatively affordable rents, the area has drawn design, fashion, e-commerce, media and a range of creative industries. Many converted old factories now offer high-ceilinged, flexibly partitioned large units, well suited to firms needing showroom, shooting or light-production space. The submarket is gradually evolving from purely industrial use into a mixed commercial-industrial community.

Kowloon East: Kwun Tong and Kowloon Bay

Kwun Tong and Kowloon Bay in Kowloon East represent a larger-scale transformation story. Driven by the positioning of a regional business hub and continued infrastructure improvement, the area offers both newly completed Grade-A towers and abundant office and commercial floor space revitalised from old factories. For firms seeking far more usable area at a fraction of core-district cost, Kowloon East is an attractive alternative—particularly for back offices, customer-service centres and operations with relatively flexible location needs.

The Opportunity: Low-Cost Large Floorplates

For tenants, the most tangible appeal of revitalised and converted space lies in securing larger areas at a lower unit cost. Compared with core business districts, rents per square foot in these areas are generally more affordable, and supply of large, regular units is comparatively ample—making it easy to consolidate teams, set up showrooms or create flexible workspace in one move. For firms in expansion or those needing adaptable space, it is a pragmatic choice.

What Tenants Should Watch

That said, converted space also warrants careful handling; tenants should verify the following before committing:

  • Permitted use and compliance: confirm the unit's actual approved use matches the tenant's business, avoiding conflict with the building's original industrial use or fire-safety requirements.
  • Building facilities: lifts, washrooms, air-conditioning and power specifications in older factories may not match newer commercial towers—assess whether they suit daily operations.
  • Environment and amenities: some transitioning submarkets still mix industrial and commercial uses, and surrounding amenities and foot traffic may be less mature than in core districts.
  • Management and long-term plans: understanding the owner's overall revitalisation programme and management standard helps gauge how the environment may change over the lease term.

Overall, revitalised industrial buildings open a door to trading cost for space, but opportunity and caveats go hand in hand. Only thorough due diligence turns the advantage of low-cost large floorplates into genuine operational benefit.