Scrap area where ships are built in Hong Kong? (8)

I believe the answer is:

junkyard

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'where ships are built in hong kong?' is the definition.
The answer is a location as well as being a singular noun. This is suggested by the definition.

'scrap area' is the wordplay.
'scrap' becomes 'junk' (synonyms).
'area' becomes 'yard' (yard is a kind of area).
'junk'+'yard'='JUNKYARD'

Can you help me to learn more?

I've seen this clue in The Globe and Mail.

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