There were two rows of residential units bulit at the site of the Stone Houses at the end of the 19th century. They belonged to the Ho Family and several families living there.
During the Japanese occupation, in order to expand the Kai Tak Airport, the Japanese army demolished many villages in Kowloon City. They later built clusters of squatter huts in the site near the nowaday Junction Road to resettle the villagers. After WWII, there was an influx of refugees fleeing from the civil war in Mainland China who settled at the Stone Houses area. It therefore became a squatter area, later known as the Hau Wong Temple New Village, “Lai Chi Yuen” and “Ho Ka Yuen”. A row of five traditional Chinese vernacular houses can be seen in the aerial photos of “Ho Ka Yuen” taken in 1945 and 1949. Later several film studios namely Sai Kwong Film Studio, Yau Kiu Film Studio and Great Wall Movie Enterprise Limited operated in the area.
Due to the rise of the industrial sector in the 1960s and 1970s, small scale factories and ateliers sprang up in the area. An example was Nam Yan Kee Grave and Tombstone Construction Company, back then located at No.31 of the Stone Houses. Going in line with the redevelopment project of Kowloon City, the squatter area was completely cleared in 2001, but the sign board of Nam Yan Kee has been retained.