New World Development (0017) and China Resources Land (Overseas) have broken ground on the first phase of a joint residential project in Yuen Long South, part of the government’s planned Northern Metropolis development zone, the companies said on Wednesday.

The project covers a total gross floor area of approximately 720,000 square feet and will be developed in phases.

The first site, which has completed land-premium payment, will offer around 700 units with sales targeted for fiscal 2027, they said.

The partners expect the two planned projects to deliver about 1,800 homes in total.

Echo Huang Shaomei, executive director and chief executive of New World Development, said the group will continue to accelerate the unlocking of agricultural land value through various means, while also seeking strategic partners to enhance overall development potential and speed up capital recycling.

The developer currently has approximately 15 million square feet site area of agricultural land bank, much of which is situated in prime locations within the Northern Metropolis, Huang added.

The Northern Metropolis is the new engine for Hong Kong’s future development and a crucial cornerstone for the Guangdong-Hong Kong-Macao Greater Bay Area initiative, said Jack Chang Ying, chairman of CR Land (Overseas).

New World, CR Land (Overseas) break ground on Yuen Long project