The Urban Renewal Authority (URA) has announced it will build 4,350 flats in Kowloon City over the next 12 years in its second-largest redevelopment to date, but residents and business owners in the area known for its heavy concentration of ethnic Thais and traditional stores have expressed concerns that the project may destroy the soul of the neighbourhood.

Comprising three sites with a total area of 37,000 square metres, the project is expected to produce a fivefold increase in the overall number of flats in the neighbourhood once the redevelopment is completed in 2036-37.

With the combined area accounting for 1,000 property interests, the authority on Friday said it would begin making acquisitions and issuing compensation, with residents to receive either financial reimbursement or a new flat upon completion of the project.