Hong Kong’s Northern Metropolis: A Strategic Move to Attract Investors
The development of Hong Kong’s Northern Metropolis has taken a significant turn as officials explore new ways to make the project more attractive to investors. Secretary for Development Bernadette Linn Hon-ho has highlighted that relaxing certain development rules is not a concession to developers, but rather a strategic move to enhance the region’s appeal.
Linn emphasized that the government is considering extending the six-year construction limit under the first large-scale land parcel scheme in Hung Shui Kiu. This proposal is part of broader incentives aimed at encouraging bidders to participate in the project tender by the end of this year. The initiative seeks to harness market forces to accelerate the development of the 30,000-hectare (74,132-acre) Northern Metropolis, which lies near the city’s border with mainland China.
Enhancing Financial Viability
To improve the financial viability of the project, authorities have introduced several measures. These include allocating an extra private residential plot and exempting the successful bidder from constructing a public road. Linn noted that the government is open to responding to “reasonable demands” from developers who face cash flow challenges, including extending the construction period appropriately.
She explained that while Hong Kong offers advantages such as a low tax rate, common law system, and strict contractual management, it also faces challenges like high wages and lengthy approval processes. To offset these, the government is looking at other areas where it can provide support, such as allowing a longer construction period or offering more residential sites.
Competing for Investment
Linn expressed confidence in the tender outcome, noting that both local and mainland enterprises have responded positively to the revised directions. She described them as “on the right track” and mentioned that interest in participation is increasing. Some companies are even discussing the formation of a cross-border consortium to bid for the project.
Hung Shui Kiu and neighboring Ha Tsuen are among the first batch of new towns within the Northern Metropolis. The 441-hectare development is envisioned to become a hub for high-end professional services and logistics. Linn highlighted that nine hectares of land in Hung Shui Kiu are earmarked for higher education, with applied universities expected to better align with the new town’s focus on modern industrial use.
Establishing a Government-Owned Company
Under the plan, the administration will establish a government-owned company next year to manage a logistics and industry park covering more than 20 hectares in Hung Shui Kiu. Linn said the company is expected to begin operations in mid-2026 and that the government may inject seed capital into it, in addition to granting the land for its management.
She added that the government is also considering broadening permitted land uses to allow greater flexibility in development. Currently, designated plots are restricted to cargo-handling purposes under the town planning regime. However, the industry hopes to include uses such as research and development, advanced construction, convention facilities, showrooms, and talent accommodation.
Linn stressed that the intention is to allow uses that are “compatible and complementary” to the area’s character, and that the government will not permit the industry park to become residential. Doing so would spare the company and incoming businesses from repeatedly applying for land-use changes.
Streamlining Procedures
Regarding the newly announced special law, unveiled in last month’s policy address to speed up the megaproject’s development, Linn clarified that the legislation will not bypass major statutory requirements, such as the environmental impact assessment process. She emphasized that the purpose is not to circumvent procedures, but to simplify workflows on aligning land-use discrepancies across areas and handling minor relaxations of development parameters.
Among the proposed changes being considered are measures to align permitted uses within the same land zone across different statutory plans in the Northern Metropolis through a simplified process that would not require public hearings. Another adjustment would streamline minor relaxations to building height and development intensity, as the current citywide approval process takes several months and requires endorsement from the statutory Town Planning Board.
Linn said the government is also exploring ways to speed up the approval process for overnight construction, given that noise control requirements are less stringent in newly developed areas. She added that the minor relaxation of development parameters would have minimal impact on nearby neighborhoods since the Northern Metropolis has yet to reach a mature stage of development and would remain within the capacity of the planned transport infrastructure.
