Hong Kong plans faster tech hub development to boost home supply

[HONG KONG] Hong Kong pledged to accelerate the development of a technology hub near mainland China, building on previous measures to create momentum for the ambitious multibillion-dollar project.

Chief executive John Lee said the city will adopt a smart city concept in the planning of transport, housing and public facilities in Northern Metropolis, during a speech on Wednesday (Sep 16).

This came as he unveiled Hong Kong’s first five-year development plan, a blueprint covering the economy and social policy.

The land supply for “spade-ready sites” in the mega development will reach 900 hectares by 2030, a cumulative increase of 750 per cent, according to an official document.

The area is expected to provide 70,000 homes over the next five years, thus becoming a major source of supply in one of the world’s most expensive housing markets.

Lee also said on Wednesday that the government will aim to improve the housing quality for both public and private sectors in the new projects there.

The five-year plan gives Northern Metropolis its “clearest and most actionable timeline to date”, said Hannah Jeong, head of valuation & advisory services in Hong Kong for real estate consultancy CBRE Group.

She said the development’s next chapter would be defined by many factors including whether the commercial frameworks attract real capital and if the professionals the university towns are looking to attract, actually choose to live and work there.

First proposed in 2021, the Northern Metropolis development spans about one-third of Hong Kong’s territory and covers a long-overlooked region bordering Shenzhen.

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Authorities hope to transform the rural frontier of fish ponds, farmland and villages into a tech area filled with cutting-edge labs and startups for 2.5 million people.

The project is also intended to deepen Hong Kong’s physical and economic links with mainland China.

Separately, Hong Kong proposed to lower property stamp duty for new parents in a bid to boost birth rates and home sales. Families who purchase a residential property within one year before childbirth or within two years after childbirth can receive up to HK$20,000 (US$2,550) in stamp duty relief.

The real estate sector reacted positively to Lee’s speech. A Bloomberg Intelligence stock gauge of Hong Kong real estate owners rose as much as 0.8 per cent, with shares of local builders Sun Hung Kai Properties and Henderson Land Development gaining up to 0.9 per cent.

Illustrating the hurdles to turning Northern Metropolis into a new economic engine, the first batch of residential sales in the area had a middling start in August due to high prices.

In February, local officials said they would pull HK$150 billion from the city’s currency defence fund to support the project – a high-profile show of support, while local real estate developers are growing skeptical about the sprawling plan.

“More large land parcels in the Northern Metropolis will be available for tender through the government’s large-scale land-disposal approach, favoring cash-rich developers,” Patrick Wong, senior analyst at Bloomberg Intelligence, said in a note in September.

“Smaller property developers are likely to remain sidelined from land tenders.”

Hong Kong private home prices have risen more than 7 per cent in 2026 up until July, bringing a renewed buzz to the city’s property market with support from mainland Chinese buyers.

But sales have been slowing in recent weeks after a series of cross-border capital clampdowns from mainland authorities, dampening interest from homebuyers. BLOOMBERG