Transparency needed to boost confidence in Northern Metropolis: analysts

An analyst also pointed out that developers are hesitant due to unclear government policies.

Whilst the government has committed capital resources to the Northern Metropolis project, concerns remain about execution and financial constraints, analysts said.

CBRE emphasised the need for greater transparency, stating that “given the market concerns on the Northern Metropolis development, the government should outline the detailed information on the funding and execution plans, amidst the prolonged market downturn.” Without clear plans, market confidence in the project may remain weak.

Private sector investment is another challenge, particularly given the sluggish land market.

CBRE noted that “the Hong Kong-Shenzhen Western Rail Link will further enhance accessibility between Hong Kong and Shenzhen, benefiting the Northern Metropolis. However, the government needs to thoroughly consider how to attract private infrastructure companies to get involved.”

Colliers also pointed out that developers are hesitant due to unclear government policies. “Developers are hesitant due to unclear government strategies and economic challenges,” Colliers stated. Addressing these concerns will be key to driving private-sector participation.

Cushman & Wakefield stressed that infrastructure development will be critical to boosting investor confidence. “Infrastructure investment in the Northern Metropolis is crucial for boosting investor confidence. Efficient connectivity with Shenzhen will be key to success,” the firm said.

Government incentives will also be necessary to attract developers. “Developers require clearer land release plans and incentives,” Cushman & Wakefield added. Without proper support, market interest in the project could remain subdued.

Whilst the Northern Metropolis holds significant potential, experts agree that financial transparency, phased land sales, and strong infrastructure planning are essential.

If these issues are not addressed, the project may struggle to gain the momentum it needs for long-term success.