CE Lee sets up committee to speed up Northern Metropolis development

It will oversee three new working groups.

Chief Executive John Lee announced in his 2025 Policy Address the creation of the Committee on Development of the Northern Metropolis.

The committee will oversee three new working groups tasked with streamlining administrative processes, removing barriers, and coordinating planning and construction.

The Working Group on Devising Development & Operation Models, led by Financial Secretary Paul Chan, will design new frameworks for industry parks, including shifting from the current “highest bidder wins” system to a “two-envelope approach” that factors in industry relevance.

Financing models such as equity, bonds, government investment, and land-as-capital participation will also be explored.

The Working Group on Planning & Construction of the University Town, headed by Chief Secretary Chan Kwok-ki, will conduct research into global best practices and consult local and international universities.

Its goal is to attract leading institutions to Hong Kong and deepen integration between industry and academia.

Three batches of sites are expected to be available in Hung Shui Kiu (2026), Ngau Tam Mei (2028) and New Territories North New Town (2030).

The Working Group on Planning & Development, under Deputy Financial Secretary Michael Wong, will manage the entire process from planning to implementation through a new project supervision office.

New measures include a fast track processing system to adopt construction technologies, a phased development approach to start with low-density facilities, and a land use review in Au Tau to support the Northern Link.

Flexible land grant arrangements, voluntary land surrender schemes, and a “pay for what you build” model for land premiums will also be introduced.

Dedicated legislation will be drafted to simplify procedures, speed up approvals, set up statutory industry park companies, and accelerate compensation for land resumption.

Marcos Chan, head of research at CBRE Hong Kong, said the establishment of the Committee on the Development of the Northern Metropolis and new legislation will “streamline administrative workflows” and ensure “optimal allocation and utilization of resources,” whilst reducing risks for developers.

“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," he said. "This will result in a growing number of new companies and highly skilled professionals, including management staff, to move to Hong Kong."

Chan also noted that advancing life sciences, health technology, and pharmaceutical engineering will fuel demand for “high-quality R&D facilities, as well as temperature-controlled storage and logistics facilities.”

Hannah Jeong, head of valuation & advisory services at CBRE Hong Kong, also supported the rollout of the Northern Metropolis University Town, stressing the need for a “clear, industry-led approach guided by the working group” and pointing to Hung Shui Kiu/Ha Tsuen as the anchor site due to its advanced infrastructure.

She also backed “flexible land-grant arrangements, including long-term tenancies and varied allocation methods such as open tendering, restricted tendering, and direct grants” to lower entry barriers and attract investment.

On San Tin Technopole, Jeong called for a “clear and transparent roadmap” covering land applications, proposals, and infrastructure, warning that without structured planning including retail and community facilities, the area risks “inefficient land use, fragmented planning, and unnecessary competition for limited space.”

On transport, Lee said that Kwu Tung Station and Hung Shui Kiu Station will be completed in 2027 and 2030.

The government and MTR Corporation will deliver the Northern Link Main Line and Spur Line together by 2034 or earlier.