Hong Kong industrial buildings used illegally for shops despite crackdown
A government push to stop their misuse has so far fallen flat
PUBLISHED : Friday, 06 February, 2015, 12:51am
UPDATED : Friday, 06 February, 2015, 12:51am
Alan Yu [email protected]
Visitors snap up baby products at an industrial building in Tuen Mun - despite a government crackdown. Photo: K.Y. Cheng
The government is cracking down on the illegal use of industrial buildings in the New Territories for the sale of baby products popular with mainlanders - seemingly with little effect.
The example of one such business in Tuen Mun suggested that a warning from the Lands Department to its landlord, issued on Monday, would not cause it to close before the busy Lunar New Year shopping period later this month.
The sight of visitors wheeling suitcases to industrial buildings in areas such as Tuen Mun, Yuen Long and the Northern district has grown increasingly common, as landlords lease units to shop owners keen to benefit from an influx of mainland shoppers.
One such store is Kissbaby, on the 19th floor of the Mai Kei Industrial Building in Tuen Mun. Yesterday, it was open as usual from 10am to 8pm. The Lands Department confirmed it had found several units in the building - including the one housing Kissbaby - that were used in ways that breached the land lease, which allows only industrial or warehouse use.
Owners were told that unless they took action, the department would register warnings with the Land Registry, potentially leading to difficulties selling the property. Ultimately, the department could take back units.
Owner Candy Lee said Kissbaby had been in business for a year, and hers was not the only shop in the building. She had been upfront with the landlord about what she intended to do.
"We all agree it's crazy. The problem is with the government," Lee said. "I asked the Lands Department, and they said it was nothing against my shop.
"They said it was a crackdown on all shops inside industrial buildings, so I asked how they define an industrial building versus a commercial one. They said you can't even have an office inside an industrial building; you can't sleep inside one. Well, a lot of industrial buildings are used as classrooms, studios, even churches. Are you going to close all of them?"
The use of industrial buildings is a matter of controversy. With much of the city's industry moving across the border, there is little demand for them and some owners have illegally converted them to more lucrative purposes.
Since 2009, the government has encouraged redevelopment of industrial buildings by allowing their conversion without payment of land premiums. But reaching agreement on a redevelopment can be tough in buildings with multiple owners.
Lee said business had fallen about 15 per cent since news of the warnings emerged. Her landlord is negotiating with the department, but she says she will not close unless forced to do so. About 70 to 80 per cent of her customers are from the mainland.
The rise of stores in industrial buildings is just the latest sign of the influx of mainland shoppers - many of whom resell the products across the border. Mainlanders have been accused of causing overcrowding on public transport in the northern New Territories, and locals bemoan the fact stores catering to mainlanders' needs have edged out those selling daily necessities.
