By JOANNE LEE-YOUNG

Photographs by Philipp Englehorn for The Wall Street Journal

The living area

Hong Kong

After graduating from Cornell University's architecture school, friends Kevin Chin-Kwok Lim and Edward Yujoong Kim moved to Hong Kong, one of the priciest real estate markets on earth. Mr. Lim, 26, who grew up in the city, moved back in with his parents and grandmother. Mr. Kim, 27, stuffed himself and his girlfriend into a 180-square-foot apartment.

Fortunately the duo also hold the keys to a 3,900-square-foot warehouse loft that has evolved into an office, exhibition space and place to stretch out, entertain and relax.

This is not a fancy condo conversion. The loft is on the 19th floor of a working warehouse in an industrial part of Hong Kong. Visitors have to steer around stacked cartons and workers pushing bags of chemical powders into service elevators. It's dank and charmless until an aluminum door slides open to reveal a huge open space with white ceilings, walls and light tiled floors.

Mr. Lim's father, William Lim, 54, a Hong Kong-based architect, artist and art collector, bought the loft in November 2010 for $1 million. He used to rent three separate spaces: an art studio, an apartment for storing his collection and another to show it off. When he saw this place, it was a chance to consolidate. He estimated spending about $142,000 to renovate.

There are few walls. A modern kitchen is at the left; a beige sofa and coffee table made from flatbed trolleys topped with acrylic carves out a living area. A large table, a few chairs and a giant, orange floor lamp in one corner marks the office. A long, glass-enclosed balcony seals out much of the noise from a massive pit below filled with cranes, dump trucks, cement mixers and bulldozers, constructing a new subway station.

Photos: Industrial Living in Hong Kong

On the 19th floor of a working warehouse, a vast loft serves as a multi-purpose hangout.

Philipp Engelhorn for The Wall Street Journal

After graduating from Cornell University's architecture school, friends Kevin Chin-Kwok Lim and Edward Yujoong Kim moved to Hong Kong, one of the priciest real estate markets on earth.

The loft's centerpiece and main sleeping area is a striking 20-by-13-foot rectangular structure. It's made up of 163 pieces of plywood fit together with tongue-and-groove notches and painted black. The result a grid of cubbyholes filled with art books and collectibles, like a polka dot paperweight by Japanese artist Yayoi Kusama. The books are laid flat, allowing light to flow through the structure. "The idea was to create a space without using walls," said the younger Mr. Lim, who designed the piece with Mr. Kim and Eddy Man Kim, their third partner who is planning to move to Hong Kong soon.

Within the structure is about 290 square feet of den-like space holding a sofa, small rugs and stacks of DVDs and books. Further into this space, wide, bleached-wood steps lead to a flat platform level that can be topped with cushions and used as beds.

If they are working late into the night, the young architects might toss a tatami mat or thick piece of foam on top of the structure and crash. There is another snoozing spot on the outside edge of the structure, and the men recently placed a thick piece of plywood in a top corner, giving the option of making a loft bed there too.

"When you wake up, it feels like you are on the sea," said Zhang Wei, a Guangzhou-based curator who was an overnight guest on a recent trip. She and her husband piled blankets and pillows onto the structure for a bed. "It's like being on an island because the space around is so huge."

On the far other side of the loft, the space turns into an art gallery. There is a sculpture in the shape of a plate folded in half, by mainland Chinese dissident artist Ai Weiwei. An angular, metallic satellite-like mobile by Korean artist Lee Bul floats in the air. A portrait by U.K. artist Julian Opie hangs on one wall next to an oversized Chinese lantern. There is a gray concrete bathroom with rough bits of exposed brick. It has a communal sink, a shower unit and three toilet stalls.

Photographs by Philipp Englehorn for The Wall Street Journal

A mobile by Lee Bul and recliner by William Lim

Technically, lofts like this are zoned for commercial use. But real estate agents say more entrepreneurs, including artists, retailers and design companies, are combining work and living spaces into them. There is actually a loophole regulation that permits warehouse spaces to have one or two watch guards who may stay overnight. Nothing forbids them from dozing off, said the elder Mr. Lim.

Recently, the government said it can't regularly inspect all warehouses and will only act to enforce zoning regulations if there are complaints. Currently, a 6,700-square-foot warehouse loft in the same area, which comes renovated and with a rooftop terrace, is listed for $5.1 million.

The elder Mr. Lim sits on the board of the Asia Art Archive, which documents the history of contemporary art in Asia, and he is co-chair of Para/Site, a non-profit art space in Hong Kong. When he hosts presentations at the loft, attendees gather on wooden bleacher-like seating that spills off one side of the structure. This week, to coincide with the Hong Kong International Art Fair, he will preside over an open house at the loft to exhibit his art collection.

Right now, the young architects are keeping busy with their new design firm, called openUU. They are working on a penthouse, an art gallery and a private school cafeteria in Hong Kong. In Shanghai, they are designing a seafood retail shop. The loft will continue to serve the elder Mr. Lim's art interests, but, for now, it's also a home base for the younger architects to start their careers.

Says Mr. Kim: "The idea is to see how many different activities we can pack in here."

A version of this article appeared May 18, 2012, on page D6 in the U.S. edition of The Wall Street Journal, with the headline: To Doze, Design in Hong Kong.

By KELLY CROW

Agence France-Presse/Getty Images

Daniel Buren, 'Photo-souvenir: From Three Windows, 5 Colours for 252 Places, Work in Situ'

Hong Kong

"Expansion" is a six-foot-long, multicolored abstract created by Chinese painter Chu Teh-Chun in 2006. The painting's title could also sum up the ambition of Art HK: The Hong Kong International Art Fair, where the work sold Wednesday to a Chinese buyer for around $900,000.

   

 

Kelly Crow on Lunch Break reports from Hong Kong on that city's major contemporary art fair, Art HK, which Art Basel has bought a controlling stake in.

Since its kickoff five years ago, Art HK has grown into Asia's pre-eminent art fair, drawing over 60,000 people a year into a warren of booths that spread across a pair of vast halls in the Hong Kong Convention and Exhibition Centre.

European Pressphoto Agency

'I Didn't Notice What I Am Doing,' pictured here, by Sun Yuan and Peng Yu., on view at the fair.

This year, at least 700 galleries applied for the fair's 266 slots, said fair director Magnus Renfrew. Several dealers, like Shanghai's Pearl Lam and Paris's Emmanuel Perrotin, waited until fair week to debut their new gallery outposts in Hong Kong. Luxury brands Veuve Clicquot and Shanghai Tang threw late-night parties to coincide with the event.

All of it dovetails with Hong Kong's long-term plans to become a year-round, art-selling hub to rival London or New York—an aspiration wedded to Asia's wealth boom.

There's still an unpredictable energy to Art HK, as Western galleries—who make up about half the fair's dealers—anxiously try to nail down the shifting tastes and spending habits of newer Asian collectors, who are the real power players here.

The mood has been mostly upbeat. Few booths are sold out entirely, but major galleries like Pace are reporting steady sales for works priced under $1 million, thanks mainly to buyers from Asia and Europe. Dealers said at least 300 Australian collectors signed up to attend, happy to have a fair comparatively close to home.

On the other hand, American collectors, who typically flock to major art fairs world-wide, have proven surprisingly scarce. Dealers reasoned that Americans might have gotten their fix at Frieze, a London fair that debuted its own New York edition two weeks ago. Others are also likely saving up for next month's Art Basel, the Swiss contemporary art fair whose owner MCH Group recently bought a majority ownership stake in Art HK. (Next spring, Art HK will be renamed Art Basel Hong Kong.) The fair closes Sunday.

On Wednesday, a reliable group of well-known collectors turned out for the fair's VIP preview, including François Pinault, Christie's owner; Uli Sigg, a former Swiss ambassador to China; Rudy Tseng, a former Walt Disney executive from Taiwan and Richard Chang, the Beijing director of investment firm Tira Holdings.

The galleries also worked to make first-timers feel comfortable. London's Annely Juda Gallery taped up a sign in Mandarin offering to divulge prices for its offerings—something dealers usually just whisper to prospective buyers on a case-by-case basis. Dealer David Juda also placed a small sticker shaped like a red dot beside David Hockney's $950,000 painting of a log, "Felled Totem, September 8th, 2009," to indicate that the work in that booth had already found a buyer. Mr. Juda doesn't apply stickers at other fairs, but he said, "I heard it was a good idea here to reassure people when works are sold."

Plenty of galleries dangled new works by Asian artists in their rosters. In one of the most elaborate displays, the Gagosian Gallery added a carpeted side room to its booth to showcase a pair of new pencil drawings of trees by Zeng Fanzhi, a Chinese painter who is better known for his colorful portraits of men wearing white masks. The gallery used the other walls of this antechamber to offer up paintings by Pablo Picasso, Alberto Giacometti and Claude Monet. The lofty comparison may have helped: Mr. Zeng's drawings sold on the first day for an undisclosed sum.

London dealer Stephane Custot, who sold the Chu Teh-Chun abstract, also brought a $2.2 million Picasso musketeer painting, 1969's "Bust of a Man." But so far, he said passersby had gravitated to their hometown favorite: "It's easier here to sell a Chu Teh-Chun than a Picasso."

Mr. Tseng, the Taiwanese collector, said he thinks the ongoing strength of this fair will lie in artistic mix of East and West. This time, he said he liked German painter Gerhard Richter's wall-size print "Stripe" at Marian Goodman's booth. He also raved about Beijing art duo Sun Yuan and Peng Yu's life-size sculptures of dinosaurs and rhinoceroses, which stood, like a scattered herd, in several fair booths. "See? Everything about this fair is getting bigger," he added.

Write to Kelly Crow at kelly.crow@wsj.com

A version of this article appeared May 18, 2012, on page D4 in the U.S. edition of The Wall Street Journal, with the headline: The Next Global Art Powerhouse.

Art Basel Art Basel co-directors Annette Schönholzer and Marc Spiegler

This year’s Hong Kong International Art Fair is a week away, but its organizers are already focused on 2013.

That’s when the event — Asia’s biggest and most lucrative art fair — will be reborn as the Hong Kong edition of Art Basel. It will be held May 23 to 26 and remain at the city’s convention center.

Associated Press

Paul McCarthy’s ‘Daddies Tamato Ketchup Inflatable 2007′ at the entrance to the Hong Kong International Art Fair in 2011.

Marc Spiegler, co-director of Art Basel and sister event Art Basel Miami Beach, the biggest art fair in the U.S., said there will be “significant differences from this year” but declined to share details. MCH Group, which owns both Art Basel fairs, bought a 60% stake in Hong Kong’s fair last May.

Exhibitors, however, will get some idea of what’s changing on June 11, when Basel releases information on the selection committee and makes its 2013 applications available.

Among galleries’ concerns: that Art Basel Hong Kong will feature the same names that pop up in the U.S. and Europe. That won’t happen, Mr. Spiegler said.

“Every gallery has to apply every time to every show,” he said. “We want [to avoid] shows that all look the same. There will never be a get-in-once, get-in-three times concept, though that would make our lives simpler.”

Magnus Renfrew, the Hong Kong art fair director who is now Art Basel’s director in Asia, said the fair is committed to keeping a 50-50 split between Western and Asian (which they define as including the entire Asia-Pacific region as well as the Middle East and Turkey) galleries.

WOW Productions - Magnus Renfrew

What patrons can expect is to see top-selling Asian artists and galleries appear in Miami and Basel, similar to Art Basel Miami, which raised the profiles of Latin American artists, who were then invited to Switzerland. “There is cross-pollination,” Mr. Spiegler said.

In an effort to cultivate Asian collectors, Art Basel has hired VIP relations officers in Shanghai, Singapore and Sydney, and is seeking representatives in Beijing and Taipei.

“This kind of high-touch approach is important,” said Mr. Renfrew.

While the May date is conveniently near Hong Kong’s spring auctions, it’s not ideal for overseas collectors and galleries, who are already hopping from Frieze in New York to Art Basel in Switzerland this time of year.

Mr. Spiegler cited the logistics of booking Hong Kong’s convention center, which is packed with trade shows and other events in the spring. “This is an issue we’ve been working on,” he said.

Follow Alexandra A. Seno on Twitter @alexandraseno