CBRE welcomes the 2025 Hong Kong Policy Address which was announced today (17 September 2025). Regarding Northern Metropolis Development, and I&T Development,
Marcos Chan, Head of Research, CBRE Hong Kong, said: “The establishment of the Committee on the Development of the Northern Metropolis and the introduction of dedicated legislation for the region’s development will streamline administrative workflows. This approach will ensure that efforts and investments are used effectively, leading to optimal allocation and utilization of resources. It will also reduce development risks and enhance the interests of developers involved in projects within the region.”
“The new policy aimed at creating packages that offer preferential treatment for land grants, financial subsidies, and tax incentives will greatly increase Hong Kong’s appeal to strategic enterprises. This will result in a growing number of new companies and highly skilled professionals, including management staff, to move to Hong Kong. This influx will gradually boost the demand for both residential and commercial real estate in the region.”
“Efforts to advance life sciences, health technology, and pharmaceutical engineering in Hong Kong will increase the demand for high-quality R&D facilities, as well as temperature-controlled storage and logistics facilities.”
Marcos Chan 
Hannah Jeong
Hannah Jeong, Head of Valuation & Advisory Services, CBRE Hong Kong, said: “We support the development of the Northern Metropolis University Town and welcome the phased rollout of sites in Hung Shui Kiu/ Ha Tsuen (2026), Ngau Tam Mei (2028), and New Territories North New Town (2030). To ensure strategic alignment and long-term success, a clear, industry-led approach guided by the working group is essential. Among the three locations, Hung Shui Kiu/Ha Tsuen is the most advanced in terms of infrastructure and development readiness, and should serve as the anchor site to lead the overall concept. Current reserved areas for E&T (enterprise and technology) and Logistics may be able to utilise this immediate demand in Hung Shui Kiu/ Ha Tsuen NDAs. Strong collaboration with universities and education institutions will be crucial to shaping the vision, attracting talent, and fostering innovation across the region.
“Regarding the setup of statutory industry park companies, transparent and open communications should be maintained within the government bodies especially this new setup and HKSTP, HSITP and Cyberport who will all take important roles for the Northern Metropolis development. Market would like to understand the long-term schedule of industrial /logistics land disposal as a whole (not only Northern Metropolis but also Kwai Tsing area) to put the proper business plan.”
“Regarding the flexible land-grant arrangements, we fully support the implementation of flexible land-grant arrangements—including long-term tenancies and varied allocation methods such as open tendering, restricted tendering, and direct grants, as a means to accelerate the development of the Northern Metropolis. These unconventional approaches offer developers greater flexibility, reduce entry barriers, and help attract broader investment interest. It is strongly recommended that the government invite enterprises to submit proposals outlining their economic contributions, which could justify a more flexible land pricing mechanism, particularly where larger social benefits are demonstrated. In addition, we welcome the proposed “pay for what you build” and phased payments of land premiums, which can significantly reduce upfront land premium costs and build excessive while the area is still under developing. I believe these initiatives will ease financial pressure on developers, improve project viability, and encourage more active participation in the Northern Metropolis.”
“To unlock the full potential of the Northern Metropolis’s San Tin Technopole, it is essential that the government provides a clear and transparent roadmap for enterprises to apply for land and submit development proposals, including their projected economic contributions. This roadmap should also outline the availability of basic civil infrastructure, which is a critical enabler for private investment.
Given the substantial capital required for development, the government should consider minimizing the initial infrastructure-related capex burden on private enterprises, especially for foundational utilities and transport links that traditionally fall under the public sector’s remit.
While the current I&T zoning allows for multi-use development, a more structured blueprint is needed to incorporate amenities such as retail and community facilities. Without this, we risk inefficient land use, fragmented planning, and unnecessary competition for limited space within the San Tin Technopole.”