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Weekly Snippet | Northern Metropolis sparks review of land bank strategy

Hong Kong Blog Snippet 20211103 1536x1040

The latest Weekly Snippet sheds light on the Northern Metropolis Development. Rosaline Fu of Valuation & Advisory Services explores how the planned infrastructure should facilitate the start of major development in the northern area.

The Northern Metropolis Development will provide a focus on enhancing Hong Kong’s economic growth and cross-boundary integration via the Greater Bay Area, as announced in the Chief Executive’s 2021 Policy Address. The metropolis has a land area of about 300 km² covering both the Yuen Long and North Districts, encompassing the existing towns Tin Shui Wai, Yuen Long, Fanling/Sheung Shui, their neighbouring rural areas, and six New Development Areas.

Pulling in the same direction, earlier this year we saw the seventh Boundary Control Point open at Liantang/Heung Yuen Wai, which is part of the plan to enhance eastern and western connectivity to the mainland. Other plans include:

  1. Constructing the Hong Kong-Shenzhen Western Railway, which will link Hung Shui Kiu/Ha Tsuen New Development Area (HSK/HT NDA), and Qianhai of Shenzhen
  2. Extending the Northern Link towards the port of Huanggang in Shenzhen, via the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop, and from the Kwu Tung Station to connect to Lo Wu, Man Kam, Heung Yuen Wai and other areas. 

The planned infrastructure will boost the flow of capital, talent, and population, creating more job and investment opportunities for all stakeholders. An example of this would be the future HSK/HT NDA, with more than 3.6Mn sq. m. GFA of logistics facilities to be used as backup port storage and workshops. With the enhanced connectivity to Qianhai, Shenzhen via the Kong Sham Western Highway and future railway, the HSK/HT NDA will become a hub for logistics or industrial development investors.

Throughout this positivity, we do see the land resumption and planning process being pressured to make the NDA land available sooner than anticipated to build greater momentum towards integrating with the Greater Bay Area vision. Developers should be exploring stock and actively review their existing mid to long-term land bank strategies.

To #SeeWhatCouldBe and how we maximise the potential of your property, contact our expert Rosaline Fu today.