The Hong Kong Government has announced the Northern Metropolis Development Strategy, a visionary plan to transform the northern part of Hong Kong into a thriving metropolitan area. This initiative aims to enhance the city’s digital presence, improve customer engagement, and create a new economic engine for Hong Kong.
Photo: May-Tse
The Northern Metropolis should focus on value-added industries, including Technology, Media, and Telecommunications (TMT), Senior Living, and Biotechnology/Science. These sectors are expected to drive economic growth, create job opportunities, and enhance the quality of life for residents. These three elements have the potential to drive economic growth, enhance quality of life, and position the Northern Metropolis as an International I&T Hub.
At the industry level, TMT plays a crucial role in driving growth in other industries, such as industrial manufacturing, healthcare and automotive. The development of industrial manufacturing and automotive sectors in Hong Kong, however, would face challenges due to relatively high labour and operating costs, limited local market scale for testing, and the realignment of the global supply chain. On the contrary, there is a strong demand for healthcare driven by the ageing population. Hong Kong is projected to have the second-highest ratio of elderly people in the world (27%), second only to Japan by 2030.
https://www.nm.gov.hk
Key Highlights of the Northern Metropolis Development Strategy:
At the property level, the Northern Metropolis development will encompass a variety of facilities such as Office, Data Centre, MICE (Meetings, Incentives, Conferences, and Exhibitions), Laboratories, Private Hospital, and Talent Accommodation. This comprehensive approach aims to create a vibrant ecosystem that supports innovation, enhances quality of life, and attracts top talent. Data centre, senior living, private hospital and industrial premises would have significant socioeconomic benefits. The high financial prospects would attract strong incentives from developers and investors. It is expected these premised would be developed best under a full private delivery model or public-private partnership (PPP) model with heavy private financing elements (build-operate-transfer (BOT), build-lease-operate-transfer (BLOT), operation licence etc.)
Challenges and Opportunities:
Challenges: The development of the Northern Metropolis faces several challenges, including the scale and long development timeframe of the project, talent shortage in high value-added segments, and securing anchor tenants for emerging industries.
Opportunities: The project opens up numerous opportunities, such as innovative implementation mechanisms, riding on the success of the Greater Bay Area, and deriving demand for healthcare-associated businesses.
Martin Wong, Senior Director and Head of Research & Consultancy, Greater China said, “The Northern Metropolis represents a significant opportunity to inaugurate a new chapter for Hong Kong. This ambitious strategy aims to increase land availability for housing, industries, and community facilities while complementing existing development projects, along with enhanced transport infrastructure. The development of the Northern Metropolis is a strategic response to national development strategies, including the 14th Five-Year Plan, which supports Hong Kong’s development into an international innovation and technology center.”
