Government eyes Q2 tender for first plots in Hong Kong-Shenzhen innovation park

The government is aiming to launch tenders for several land parcels at the Hong Kong Park in the Loop as early as the second quarter of this year, according to Permanent Secretary for Innovation, Technology and Industry Kevin Choi Kit-ming.

Speaking in a media interview, Choi said preparatory work for the first phase of the Hong Kong-Shenzhen Innovation and Technology Park was nearing completion, with the analysis “largely done.” He said authorities expect to roll out tenders for a number of sites as early as the second quarter and no later than the third quarter.

The first phase of the project comprises 22 sites under a public-private development model, and Choi said interest from the market had been strong, with developers expressing interest in nearly every plot.

He said potential bidders fall broadly into three categories: integrated developers looking to build projects for their own use or for leasing, companies in sectors such as semiconductors and artificial intelligence seeking operational space, and institutions providing supporting facilities such as education.

Choi said the government is likely to adopt a “two-envelope approach” for the tenders, similar to that used for the Sandy Ridge Data Facility Cluster site, to ensure that bids are assessed not only on land price but also on their ability to drive industrial development.

He expressed confidence in the market response, adding that the authorities hope to attract projects that can contribute to the broader innovation and technology ecosystem.

Within the park, eight buildings funded by the government are being developed, of which three have already commenced operations. More than 70 companies have moved in, while the remaining buildings are expected to be completed within the year.

Choi said rental returns from the completed buildings have been encouraging, reaching levels comparable to Grade A offices in the New Territories and facilities in the Science Park.

Turning to the San Tin Technopole, Choi said the project faces greater challenges due to its later start and the large amount of undeveloped land involved. He said the government plans to establish a dedicated company for the development within the year, with a funding proposal of HK$10 billion expected to be submitted to the Legislative Council in the third quarter.

Choi said the technopole includes about 210 hectares of innovation and technology land, much of which will require site formation and infrastructure works before development can begin.

To accelerate progress, he said authorities are exploring more flexible development models beyond the two-envelope approach, including joint ventures with private sector partners. He added that the dedicated company may set up subsidiaries to invest directly in industries, with projects eventually structured as partnerships between the government and private enterprises.

He said alternative investment arrangements could also be considered, such as allowing construction firms with limited capital to contribute through building works or site formation instead of direct financial input.

Looking ahead, Choi said the San Tin Technopole is expected to serve as a natural extension of the Hong Kong Park in the Loop, supporting more downstream industrial activities.

He emphasized that the development is not intended to compete directly with manufacturing hubs such as Dongguan or Foshan, but rather to position Hong Kong as a base for industries with high talent requirements and moderate production scale.