Strategic Land Development to Meet Hong Kong's Future Needs
As announced in the Policy Address, the government plans to deliver approximately 3,000 hectares of developable land (i.e. spade-ready sites) over the next decade (2025-26 to 2034-35), with annual variations from 150 to 450 hectares depending on project progress. This initiative is a significant step towards meeting the city’s long-term development needs. This policy aligns with the objective of meeting the land shortage of about 2,600-3,000 hectares by 2048 as estimated in the "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" report published in October 2021. The Northern Metropolis and the Kau Yi Chau Artificial Islands will provide the bulk of the new land supply. Of the total land supply, about 60% (around 1,700 hectares) will come from the Northern Metropolis and around 10% (around 300 hectares) from the Kau Yi Chau Artificial Islands.Educational and Economic Development Initiatives
Meanwhile, on November 13, the government announced the preliminary planning for Ngau Tam Mei development, which involves approximately 127 hectares of developable land. More than one-third (about 46 hectares) of the land is proposed for developing the UniTown, including the land required by the third medical school. As stated in the Policy Address, the government aims to establish Hong Kong as an international hub for post-secondary education, and this land related policy is designed to meet the future demand for educational land. This initiative not only addresses educational land needs but also supports broader economic and social infrastructure.The preliminary planning for Ngau Tam Mei also provides for development of approximately 13,000 housing units, primarily designated for private residential use. This will address the housing needs of university staff, medical staff, and others in the area, while also helping to alleviate the additional demand arising from insufficient student accommodation.
Challenges and Execution
Meeting the high demand for land to support housing, economic and community development is a significant challenge. Alongside creating new development land, it is necessary to develop infrastructure and public facilities, including transportation, utilities and community services to support new housing and industrial areas. Additionally, the Northern Metropolis project is estimated to cost at least HKD 224 billion, with costs expected to rise as the project progresses. The Kau Yi Chau Artificial Islands project has an estimated cost of HKD 580 billion. The government must strive to control and reduce construction costs while advancing land and infrastructure development.Future Outlook
The 2024 Policy Address not only addresses immediate housing and land supply issues but also lays the groundwork for Hong Kong's long-term development. By focusing on sustainable growth, the government aims to create a resilient urban environment that can adapt to future challenges. This forward-looking approach is essential for maintaining Hong Kong's competitiveness on the global stage and ensuring a high quality of life for its residents.In summary, the 2024 Policy Address is a comprehensive blueprint for addressing Hong Kong's housing crisis and fostering economic growth. Its success will hinge on careful planning, effective execution, and the ability to adapt to changing circumstances. With these elements in place, Hong Kong can look forward to a future of sustainable development and prosperity.
