A consortium comprising CSI Properties, Asia Standard International, and property tycoon Cheung Chung-kiu has sought approval to rezone a commercial site in Kowloon Bay for residential use amid persistently high office vacancy rates in Kowloon East. The group has submitted an application to the Town Planning Board to redevelop Harbourside HQ, a grade A office building at 8 Lam Chak Street, into mixed-use residential towers.

The developers propose increasing the site’s plot ratio from five to seven to construct two towers ranging between 30 and 38 storeys, delivering approximately 1,140 flats averaging 400 square feet each. The project, if approved, is slated for completion in 2033. Harbourside HQ, formerly known as Octa Tower and previously owned by Nan Fung Group, was acquired by the consortium in 2018 for about HK$8 billion and has since undergone extensive renovations.

The Planning Department has indicated it has no objection to the rezoning request, though it noted the proposal does not fully align with current planning intentions, as it shifts the site’s primary use from commercial to predominantly residential. The department nonetheless assessed that the change would not compromise the overall integrity of the Kowloon Bay Business Area. It recommended several conditions for approval, including the submission of a detailed building height profile to ensure that structures do not encroach upon a 20 percent building-free zone along the nearby ridge line.

As of the end of 2024, office vacancy rates in Kowloon East remain elevated, with Harbourside HQ reporting a 25 percent vacancy and the wider Kwun Tong district experiencing a 22.1 percent vacancy rate—higher than the citywide average of 16.36 percent for commercial properties. This context underpins the consortium’s push for residential redevelopment.

Industry experts suggest the proposal has a strong chance of approval given its location and surrounding environment. Alvin Lam, director at Midland Surveyors, noted that Harbourside HQ is situated near the Kai Tak residential area and almost entirely surrounded by commercial buildings. He said the impact of converting the property for residential use would likely be limited, supporting the application’s viability.

The Town Planning Board is scheduled to review the redevelopment proposal shortly, with final approval pending their decision.