Land Supply in Hong Kong

Land Supply: Constraints, Choices, and a Path Forward

Only about a quarter of Hong Kong’s land is developed, while over 75% remains as country parks, conservation areas, or agricultural land. The central challenge isn't a lack of space, but the complex process of sequencing, financing, and delivering a diverse pipeline of serviced sites for development.

Where new land can come from

A multi-pronged strategy is essential to build a resilient land supply pipeline. The government is pursuing several large-scale and long-term sources concurrently.

• Northern Metropolis: This is the most significant development strategy, aiming to transform the northern New Territories into an innovation hub and residential center. Spanning thousands of hectares, it will provide substantial land for technology industries and create new towns with hundreds of thousands of homes, reshaping Hong Kong's economic geography.
• Brownfield Consolidation: Approximately 800 hectares of scattered brownfield sites (often used for open storage and workshops) are targeted for consolidation and redevelopment. This initiative not only provides spade-ready land for public housing and logistics facilities but also helps rationalize land use and improve the rural environment.
• Targeted Reclamation: Projects like the Kau Yi Chau Artificial Islands are proposed for long-term strategic supply. Reclamation provides large, unencumbered sites that can be comprehensively planned for housing, commercial hubs, and transport infrastructure, offering a solution for the next generation.
• Urban Renewal + Caverns: Redeveloping older urban districts through the Urban Renewal Authority frees up prime land for modern uses. Additionally, relocating facilities like sewage treatment plants into man-made caverns can release valuable surface land in urban cores for housing and public amenities.

What matters most

Creating land is only the first step. The true measure of success lies in how this land translates into a livable, affordable, and sustainable city.

1. Time‑to‑keys: The ultimate goal is delivering homes. Focusing on near-term projects (5–7 years) like brownfield development is crucial for addressing the immediate housing shortage, while longer-term projects like reclamation build the pipeline for the future.
2. Tenure Balance: A healthy housing market requires a mix of public rental, subsidized sale, and private flats. Aligning land supply with the government's public/private housing targets is essential for ensuring affordability and social mobility.
3. Jobs‑housing Balance: New development areas must be more than just dormitories. Ensuring convenient transport links and creating local employment opportunities are vital to prevent over-straining the transport network and to build vibrant, self-contained communities.
4. Nature‑positive Design: Development must not come at the expense of Hong Kong's rich biodiversity. Integrating green infrastructure, protecting sensitive habitats, and ensuring ecological connectivity are fundamental to creating a sustainable, nature-positive city.
5. Funding Pragmatism: Major infrastructure and land formation projects are capital-intensive. A pragmatic mix of funding sources, including government revenues from land sales (premiums), infrastructure bonds, and public-private partnerships (PPPs), is necessary to ensure financial feasibility.