Cushman urges clearer PPP roles for Northern Metropolis

The firm backs a pause in commercial land sales.

In its response to the 2026-27 Budget, Cushman & Wakefield said public–private partnerships could speed up the delivery of the Northern Metropolis and ease fiscal pressure.

It said the government must clearly define public versus commercial roles and be transparent about long-term industry objectives, land use, and returns to attract private participation.

The consultancy urged the government to secure strategic “anchor institutions” and avoid blurred industrial positioning across precincts to build clearer district identities, saying earlier clarity on university and technology industry participation would help boost developer confidence.

On financing, it supported raising the borrowing ceiling of two bond programmes to HK$900b and issuing more longer-term bonds, and suggested tapping Mandatory Provident Fund assets, which it cited at about HK$1.55t as at end-December 2025.

Cushman & Wakefield said the coming year’s land sale programme and projected first-hand private residential supply over the next three to four years indicate supply is stabilising, and recommended streamlining tender conditions and releasing sites in an orderly manner to broaden developer participation and improve sentiment.

It also backed the government’s decision to refrain from selling commercial sites in the coming year, citing Grade A office availability of about 20.3% at end-4Q 2025 and calling for regular reviews before sales resume when market conditions improve.