The Stone House was built in the late 1940s using granite quarried directly from Diamond Hill — the same hill that gave the district its name. Quarrying granite was practical and local; the rock was abundant and durable, suited to the subtropical heat and typhoon seasons of Hong Kong. It was a typical structure for the area, built by residents who had little but knew how to use what the landscape provided.

At the time, Diamond Hill was developing into one of Kowloon's densely packed squatter settlements, home to waves of migrants from mainland China. The Stone House was not exceptional among its neighbors — it was ordinary. That ordinariness is now what makes it rare. The neighborhood around it is gone; the house remains.

The Stone House did not stand alone in the memory of Tai Hom Village. A neighboring building at 5 Tai Koon Yuen — since demolished — was the former home of film director Li Han-hsiang, one of the most influential figures in Hong Kong and Taiwanese cinema during the 1950s through 1970s. His presence in this ordinary squatter neighborhood speaks to the mixed social world that such communities contained: artists, laborers, refugees, and entrepreneurs living in close quarters.

The mention of Li Han-hsiang is a reminder that Tai Hom was not merely a settlement of the poor and desperate, but a living neighborhood with its own culture and its own notable residents — the kind of layered community that official heritage designations rarely capture fully.

In 2002, Hong Kong's Antiquities Advisory Board recognized the Stone House as a Grade III historic building — a modest designation, but meaningful protection. Eight years later, that protection was removed. In September 2009, Oriental Daily reported that the government was proposing to downgrade the building to 'No Grading,' a change critics suggested was designed to smooth the way for construction of the Sha Tin to Central Link railway and its depot. The 'No Grading' classification was confirmed on 31 August 2010.

When the depot expansion proceeded in April 2013, two of the three Treasures were demolished. The Stone House alone was left untouched — not because it was protected, but because it happened to fall outside the construction footprint. Survival by geography rather than by law.

Plans to create a water garden and park on the former Tai Hom site — adjacent to the public housing estates that replaced much of the old village — have been in development since at least 2015. The proposal included relocating or incorporating all three Treasures into the new park. By the time two were demolished, only the Stone House remained to be integrated.

Construction on the park began in late 2020, with completion targeted for 2023 and 2024. As of the source material, the park remained under construction. When it opens, the Stone House will find itself in a new context: a designed green space where a squatter community once stood. Whether that framing honors or diminishes what it represents is a question Hong Kong is still working out.