West Kowloon arts hub turns to land sales as deficit widens

Land sales offer only temporary relief for West Kowloon arts hub, experts warn

Hong Kong’s West Kowloon Cultural District is turning to property development as it faces growing financial pressure and a widening operating deficit. Experts, however, have warned that land sales can offer only temporary relief and cannot substitute for a sustainable, long-term funding model for the arts hub.

Residential site to be tendered

The West Kowloon Cultural District Authority is preparing to tender a prime residential site in the first half of next year. The project could be lucrative and is expected by property experts to draw interest from major developers.

The planned tender highlights the district’s reliance on property development to ease its financial pressures. But the warning from experts underlines the limits of using land sales to address an operating deficit that is continuing to widen.

Demand expected for larger flats

Norry Lee, a senior director at property consultancy JLL, said the site’s location and potential harbour views would make it attractive to the market. He said the project would be particularly appealing for larger flats aimed at wealthier buyers.

“If you are talking about larger flats, especially those with sea views, there will definitely be demand,” Lee said. He added that the development was likely to appeal to major developers because of its scale and prime location.

The expected demand could strengthen the site’s commercial prospects when it is tendered. Yet, according to the experts cited, the proceeds from such property development would not resolve the district’s need for a sustainable long-term funding model.

Source: South China Morning Post