The department has been conducting research on rebuilding six industrial buildings for housing purposes.

Studies showed that Yip On Factory Estate in Kowloon Bay, Sui Fai Factory Estate in Fo Tan and Wang Cheong Factory Estate in Cheung Sha Wan could be developed into housing blocks on technical terms. Primary assessments expected the three factories to provide about 4,200 units in 2031.

For Kwai On Factory Estate in Kwai Chung, although there exist environmental limitations, it is still possible to be rebuilt into housing blocks. The building is expected to provide about 600 units.

However, as the proposed draft in Kwai Chung is affected by judicial review, it is still unknown whether the project can successfully commence and when it will be finished.

The remaining two buildings, Chun Sing Factory Estate in Kwai Chung and Hoi Tai Factory Estate in Tuen Mun, cannot be developed into housing blocks due to severe noise issues and poor air quality. Studies also showed there are no existing solutions to those problems

The Housing Authority said those lands will be categorized for housing purposes. They will also evacuate and destruct the four buildings at the same time, in order to shorten the time needed for reconstruction.

The final results of their studies and the further arrangements will be announced. Affected tenants will be informed as well, the department said.

Tenants of those four buildings will have 18 months to relocate. They can be compensated with a subsidy worth 15 months’ rent. They can also choose to bid the vacant units in Chun Sing Factory Estate and Hoi Tai Factory Estate, and have a 3-month rent exemption.

Tenants who will not rent any units of industrial buildings under Housing Authority will be granted a one-off HK$25,000. Those who move out nine months within the announcements of the destruction project will receive HK$100,000.