Firms urge clarity and incentives to drive Northern Metropolis development

Industry leaders back the plan but warn that high costs, vague timelines could slow uptake

Developers and consultants have welcomed the Hong Kong government’s renewed focus on the Northern Metropolis but cautioned that high construction costs, unclear timelines, and policy uncertainty could deter investment despite the area’s long-term potential.

Wing Law, Asia CEO at AtkinsRéalis, said new transport links like the Kwu Tung and Hung Shui Kiu stations and the Northern Link, due between 2027 and 2034, will form the “backbone” of the development, strengthening connectivity and integration with the Greater Bay Area.

Global consultancy firm Arup called the Northern Metropolis a “cornerstone of Hong Kong’s future” and backed its shift toward innovation, climate resilience and cross-sector collaboration, while highlighting the need to align emerging low-altitude economy plans with infrastructure and regulation.

JLL’s Alkan Au warned that high construction costs and falling property prices remain major hurdles. He said clearer timelines, incentives, and government-backed infrastructure spending are needed to attract developers, alongside faster approvals and better coordination.

PwC’s Davis Cho supported new fast-track systems but urged performance metrics, cross-boundary digital platforms, and financing tools to bring in international capital.

CBRE said new legislation and a development committee could reduce risk, while tax incentives and flexible land-grant arrangements may draw strategic enterprises and skilled talent, lifting real estate demand.

Meanwhile, Colliers said phased development can lower upfront costs, test markets and accelerate returns, while flexible land tenders tied to industry needs could spur investment and prevent land from sitting idle.

Industry leaders said these measures must be backed by detailed roadmaps, clear infrastructure schedules, and stronger public-private collaboration if the Northern Metropolis is to achieve its goal of becoming Hong Kong’s next economic growth engine.