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Salina Li

Two property developers are in discussions with the Hong Kong government to pay lower-than-market premium for land parcels in the Northern Metropolis, a priority megaproject for the authorities to spur the city’s economic growth.
New World Development (NWD) and China Resources Land are finalising talks to pay between HK$1,500 and HK$1,600 per square foot for two plots in Yuen Long, for a total estimated at more than HK$2 billion (US$254.8 million), according to a source close to the matter.
The decision was made after the government – eager to speed up the development of the Northern Metropolis – took into consideration the languid condition of Hong Kong’s property market, the source said.
The two plots were part of a HK$10 billion venture between China Resources and NWD that was announced in December 2023, which would accommodate 1,800 homes on 720,000 sq ft of buildable gross area on a site measuring 150,000 sq ft. Construction is scheduled to commence this year, according to the developers.

The premium of the Yuen Long site was reasonable, due to its mature development and convenience in terms of transport, surveyors said, adding that the rates of recent land exchanges would become reference points for ones in the future.
NWD’s shares closed 10.2 per cent higher on Thursday at HK$7.14 in Hong Kong, their biggest one-day percentage jump since March 3.

An information provider in the sub-investment grade debt market called Octus reported that NWD and its controlling shareholders in the Cheng family had been in talks with Blackstone to take one of Hong Kong’s largest property developers private.
NWD denied the report, saying that it had not been contacted by any party – neither Blackstone nor the Cheng family – about buying any of its stock, according to a statement to the Hong Kong stock exchange.
In April, a consortium led by Sun Hung Kai Properties (SHKP) and Henderson Land agreed on a land premium rate of HK$1,682 per square foot for its 34B residential site in the Hung Shui Kiu/Ha Tsuen New Development Area, which will have 2,300 residential units after completion, according to the Development Bureau.

That price is lower than the land premium rates of a mixed-use site close to Fanling and Sheung Shui, at HK$1,600 per square foot, which is another collaboration between NWD and state-controlled mainland conglomerate China Merchants Shekou Group. But the Yuen Long site is better located and the land values in the area are higher.
The source also said the Hong Kong Real Estate Developers Association (Reda) had met the Secretary for Development, Bernadette Linn Hon-ho, earlier this year to discuss the development of the Northern Metropolis.
The representatives included Keith Kerr, the chairman of The Development Studio, Reda executive committee chairman Stewart Leung Chi-kin, CK Asset Holdings, Henderson Land, SHKP, NWD and Sino Land. The topics discussed included financing and instalment payments for land premiums, the source added.
For future land exchanges, land premium rates would be set at around HK$1,500 per square foot, according to Alex Leung, senior director at CHFT Advisory and Appraisal.
A plan for the Northern Metropolis development, unveiled in 2023, pledged to build some 500,000 homes in the area and to create four major zones covering innovation and technology, high-end professional services and logistics, commerce and industry, and eco-recreation. The project is designed to address the long-standing issue of land and housing scarcity in Hong Kong.
The development of the Northern Metropolis, spanning an area of 30,000 hectares, encompasses the Yuen Long and North Districts and includes existing towns such as Yuen Long, Tin Shui Wai, Fanling and Sheung Shui.


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NWD, China Resources Land to pay reduced premium for Northern Metropolis project

A view of the Hung Shui Kiu area in Yuen Long in Hong Kong’s New Territories on October 5, 2021. Shenzhen’s skyline is in the distant background. Photo: Winson Wong

New World Tower in Central. Photo: Jelly Tse

Aerial view of Kwu Tung area in the northern reaches of Hong Kong’s New Territories pictured in October 2021. Shenzhen’s skyscrapers can be seen in the background. Photo: Winson Wong

SCMP

State-owned China Resources teams up with Hong Kong’s New World to develop US$1.3 billion Northern Metropolis residential project

The Lok Ma Chau check point at the Hong Kong’s northwest border. The Northern Metropolis development aims to create an innovation and technology hub and some 500,000 homes. Photo: May Tse

China Resources’ building in Beijing. It is one of the key state-controlled enterprises headquartered in Hong Kong.Photo: Reuters

President Xi Jinping meets with Chief Executive of the Hong Kong Special Administrative Region (HKSAR) John Lee in Beijing. Photo: ISD

Hong Kong property: New World and China Merchants Shekou to jointly develop Northern Metropolis project

New World and China Merchants Shekou have formed a partnership to jointly develop a property project in Hong Kong’s Northern Metropolis close to the border with Shenzhen. Photo: May Tse

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Eager to speed up the development of the Northern Metropolis, government takes into consideration market conditions, according to a source


Eager to speed up the development of the Northern Metropolis, government takes into consideration market conditions, according to a source.


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Eager to speed up the development of the Northern Metropolis, government takes into consideration market conditions, according to a source

Eager to speed up the development of the Northern Metropolis, government takes into consideration market conditions, according to a source