Page 40 - Urban Renewal Authority 2023-24 Annual Report

OPERATING REVIEW

Development Areas (DAs) 4 and 5 at Kwun Tong Town Centre (K7)
Covering a total site area of 53,500 square metres, the K7 Project is the largest-ever and most complex
redevelopment project undertaken by the URA. The project is divided into five development areas (DAs) for
implementation in phases. The redevelopment of DA 1 at Yuet Wah Street (Park Metropolitan) was completed in
July 2014. Redevelopment of DAs 2 and 3, which comprises four residential towers (Grand Central), the Yue Man
Square shopping mall and Hong Kong’s first public transport interchange with an indoor air-conditioned bus
waiting area, was completed in April 2021.

Following the issuance of tender invitations for DAs 4 and 5 in November 2022, the URA rejected the tender
submission received in February 2023 due to unfavourable market conditions. To enhance the attractiveness of
the joint venture (JV) tender and reinforce K7’s positioning as the “town centre”, the URA has integrated the
“vertical city” planning concept into the development of DAs 4 and 5, along with the proposal to repackage it
from a purely commercial to a mixed-use development by introducing domestic use. To better accommodate
fluctuating market conditions, the proposed development provides tenderers with the flexibility to adjust the
development mix among residential and non-residential uses under the “Floating Planning Parameters”
arrangement without the need to obtain additional planning approval.

44%

14%
42%

10%

44%
44%
7% Office Residential 21%
12%
37% Hotel Commercial 25%
Under the “Floating Planning Parameters”
arrangement, the JV developer
of the proposed mixed-use development can
respond swiftly to changing market conditions
throughout the project lifecycle to adjust the
development mix. As shown in the diagram, the
JV developer can flexibly determine the
non-domestic Gross Floor Area (GFA) for
hotel, office, and commercial uses assuming
that the domestic GFA is maximised
and unchanged.

44%
44%
12%
56%
44%

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