The Urban Renewal Authority (URA) said on Sunday it has launched a study on the creation of a "Victoria Cove Area" east of Hung Hom, which would transform part of the Victoria Harbour shoreline into an integrated area for entertainment, homes and business.

The area covers nearly 800 hectares of land and sea, stretching from Hung Hom to Kwun Tong.

Last week, Legco passed legal changes lifting a general reclamation ban in Victoria Harbour.

The authority's managing director, Wai Chi-sing, said that created the conditions for developing what he described as a world-class cove area along the To Kwa Wan waterfront, which would be comparable to the likes of Darling Harbour in Sydney.

"It is absolutely possible to become the first cove area in Hong Kong that integrates leisure and entertainment, tourism, commercial and residential plots," Wai wrote on his blog.

He noted that the Development Bureau has pushed for reclamation works in To Kwa Wan that would connect parts of the waterfront, improving accessibility to the shoreline.

Wai said the URA's study would also look at water-based leisure activities for the area.

He said there are a number of government sites in To Kwa Wan that are not fully utilised, such as temporary car parks and the Cattle Depot Artist Village.