Three pilot zones in N Metropolis draw 22 expressions of interest

Staff reporter

The development of three pilot zones in the Northern Metropolis has received 22 expressions of interest including some from mainland firms, which analysts see as a positive sign for interest in the mega project in Hong Kong.

Wheelock Properties, Sun Hung Kai Properties (0016), Henderson Land Development (0012), CK Asset (1113), Sino Land (0083), New World Development (0017) and Chinachem were seen submitting EOIs yesterday.

In addition to these local developers, builders, contractors, integrated enterprises and e-commerce logistics companies from the mainland submitted EOIs, a Development Bureau spokesperson said.

Authorities chose three zones for piloting in Hung Shui Kiu/Ha Tsuen New Development Area, Fanling North New Development Area, and San Tin Technopole, respectively. In each zone, plots for housing, industries and public facilities are all planned.

The government aims to kick off the tender for the three zones as early as the second half of the year.

Wheelock Properties will study all three zones and stay positive about the development of the Northern Metropolis as a future economic growth driver, managing director Ricky Wong Kwong-yiu said.

Colliers Hong Kong's head of research Kathy Lee Yuen-yan said the 22 EOIs indicate the market's interest in the zoning development, delivering a positive signal.

To achieve progress, Lee advised the government should accelerate the infrastructure and transportation in the areas to increase the developers' appetite for bidding.

CBRE Hong Kong's head of valuation and advisory services Hannah Jeong said the response has exceeded expectations but emphasized that participant numbers may dwindle in subsequent stages, citing the substantial upfront investments

Moreover, Jeong expects that the advantages of the zones' locations will play a crucial role in the final bidding strategies of the developers.

The authorities earlier said they expected the piloting to provide a new avenue for enterprises to participate in the development of the Northern Metropolis, accelerate the construction of residential properties and public facilities in the area, and help to reduce the government's financial expenditure, in a pamphlet distributed in a briefing session in January.

The development of the Northern Metropolis, outlined in China's 14th Five-Year Plan ending in 2025, has been pushed by the Hong Kong government since last year but developers have shown a muted interest in bidding, citing high costs for infrastructure and a sluggish property market.