Rejuvenation or the wrecking ball? : renovating Hong Kong shophouses as conservation : economic feasibility, issues and challenges

Abstract

Shophouses, or tong lau, of the 1950s and early 1960s are the last type of historic, culturally significant building extant in meaningful numbers in Hong Kong. Development pressure threatens them. The preservation of these buildings and the low-rise streetscapes and lifestyle they provide, without reliance on charity or government aid, depends on urban planning policy, tax treatment and bank lending practices.

The topic of this dissertation is identification of the issues and challenges impacting tong lau to answer the question of whether they are economically feasible in the current environment or require the support of government policy. The objective, or rationale, of this work is to prevent demolition of low-rise tong lau and loss of the low-rise streetscape to preserve their social and historical significance in a financially sustainable manner.

Much of Hong Kong’s built heritage conservation relies on government due to public ownership or use of public funds. For conservation efforts to become more widespread, forms of use and a government policy framework which results in sustainable financial independence are required. If conservation were shown to be financially rewarding, or to meet other social or corporate governance goals valued by asset owners, the private sector would more easily embrace conservation of a greater number of buildings or even neighbourhoods. In some circumstances, support in the form of government policy has been required to nurture cultural assets after they are protected but before their value as heritage assets is recognised.

In terms of existing stock, tong lau of the 1950s and early 1960s are the most numerous remaining category of heritage buildings and streetscapes in Hong Kong. Many are being demolished to use the space for high rise construction to meet strong demand for more housing units, additionally motived by profits for property developers. This threatens the remaining tong lau of the period, and it appears that none has been included in the list of 1,444 Graded Historic Buildings in Hong Kong, and puts at risk the social, historic and evidential value of the lifestyle in low rise streetscapes.

The scope of this study on tong lau is on factors affecting their financial sustainability in the current environment. This will include a brief overview of the housing market in which they are placed, and look at bank practices and government policies which particularly impact their financial sustainability and use in ways relevant to society today. This study is not primarily concerned with defining shophouse typology and their cultural significance, nor the social and historical trends which shaped them. The geographic scope of this study is primarily the situation affecting tong lau in the Central and Western District, (Fig. 3) as this is the group under greatest threat due to high land values, but also has the greatest potential as a heritage asset due to its accessibility melded with an emerging character of creativity.

Current urban planning, tax and banking policies prevent the sustainability of tong lau. Some solutions, including conservation areas, transfer of development rights, and revised approaches to mortgage lending, are outlined in this dissertation.