Page 62 - Demo

As there is a continued shortage of both private and housing supply and the city’s land bank is depleting, the Government is actively considering the redevelopment of brownfields. This implies that more industrial and logistics space will be phased out and the land shortage for the industry is likely to be exacerbated if there is not enough space planned for relocation of brownfield operations. Of the 1,579 hectares of brownfield sites in the New Territories, half (803 hectares) already fall within the boundaries of existing or planned New Development Areas (NDA) development projects and will be phased out gradually. A further 450 hectares (28%) of the brownfield sites are classified as high or medium possible Development Potential Areas (Figure 42). This suggests a greater likelihood that these brownfield sites will be eradicated to make way for housing or other development.As the brownfield sites are redeveloped, existing operators will need to find sites elsewhere for relocation. This is expected to further drive up demand for industrial space and intensify the competition for the already tight supply of land. Nonetheless, there are two sides to every question. Just as the operating space on brownfields is being phased out, there is a precious opportunity to plan comprehensively and carry out reforms to boost Hong Kong’s competitiveness as a logistics hub.Operating space on brownfields will gradually be phased out60