HONG KONG SAR – Media OutReach Newswire – 25 February 2026 –
Response to the Finances 2026/2027 by KK Chiu, Worldwide Director, Chief Government, Better China, Cushman & Wakefield:
Enhancing Implementation Effectivity within the Northern Metropolis by way of Anchor Establishments and Clear Position Definition
Within the Finances, the Authorities talked about that it’ll additional encourage builders holding land within the Northern Metropolis to collaborate with expertise or superior manufacturing enterprises in submitting joint improvement proposals. At C&W, we consider that introducing a public–non-public partnership mannequin can improve execution effectivity and assist alleviate fiscal strain, thereby accelerating the implementation of the Northern Metropolis improvement whereas leveraging market effectivity and innovation capabilities. Nonetheless, the important thing lies in how clearly the Authorities defines public and industrial roles, and ensures transparency in long-term trade targets, land use and return allocation, in an effort to entice non-public sector participation. Topic to clear planning, phased implementation and prudent regulation, the PPP mannequin can turn into an necessary software in advancing the industrialisation of the Northern Metropolis.
As famous in our earlier analysis, the Authorities might think about securing strategic “anchor establishments” and avoiding blurred industrial positioning throughout completely different precincts, in order to determine clear district identities and improve total attractiveness. We hope the Authorities will announce particulars of college and expertise trade participation as quickly as doable to strengthen builders’ confidence in advancing tasks inside the district. On the similar time, we welcome the Authorities’s adoption of our earlier suggestion to introduce versatile preparations for land premium cost within the Northern Metropolis. It will assist alleviate money circulate pressures for enterprises enterprise land improvement, and improve the feasibility and tempo of public–non-public partnerships and trade introduction initiatives.
We assist the Authorities’s proposal to extend the borrowing ceiling of the 2 bond programmes to HK$900 billion to finance the event of the Northern Metropolis, and to situation extra longer-term bonds to raised align with money circulate necessities and capital deployment for infrastructure works. Past direct bond issuance, we propose that, from a broader asset allocation perspective, the Authorities might make higher use of the sizeable Necessary Provident Fund (MPF) asset pool. In line with MPFA information, complete MPF belongings reached roughly HK$1.55 trillion as at end-December 2025, a report excessive. The Authorities might think about reasonably stress-free MPF funding restrictions to permit a sure proportion of belongings (for instance, 10%) to be invested in long-term bonds issued for Northern Metropolis improvement. This would offer a steady supply of funding for the Northern Metropolis whereas providing MPF members a further funding choice with comparatively decrease threat and steady returns, making a win-win consequence.
Land and Housing Provide
The land sale programme for the approaching 12 months, along with the projected provide of first-hand non-public residential items within the subsequent three to 4 years, signifies that land and housing provide is stabilising. We advocate that the Authorities streamline tender circumstances and launch websites to the market in an orderly method to draw broader developer participation and revitalise market sentiment.
Counsel to Help “Fundamental Housing Unit” Residents with Rehousing
The regulatory regime for “Fundamental Housing Models” is anticipated to take impact on 1 March this 12 months, with a 48-month transitional interval. Some items might fail to satisfy the brand new necessities, doubtlessly leading to tenant displacement. As well as, there are roughly 27,000 items in public rental housing estates aged over 50 years, creating important rehousing strain. We think about that the city renewal technique needs to be versatile and financially sustainable. The Authorities ought to set up clear rehousing priorities and allocate items moderately amongst affected residents, tenants of previous estates and candidates on the ready record.
Underneath the City Renewal Authority’s prevailing acquisition method, compensation based mostly on costs akin to first-hand residential properties (together with owner-occupier allowances) has imposed substantial monetary strain. We due to this fact advocate additional optimisation of the “flat-for-flat” mechanism to alleviate money compensation burdens. Particularly, the Authorities might discover allocating land in new improvement areas, resembling Tseung Kwan O, to the City Renewal Authority or associated our bodies for non-local rehousing below the “flat-for-flat” association. Whereas the present “seven-year-old flat” compensation benchmark has its foundation, the Authorities can also think about providing extra engaging alternate phrases to older constructing house owners as an incentive to expedite relocation and redevelopment progress.
We consider that such measures wouldn’t solely scale back the substantial upfront money outlay on the preliminary stage of redevelopment and ease liquidity strain on the City Renewal Authority but additionally allow capital recycling upon undertaking completion and sale, thereby establishing a financially sustainable city renewal mannequin with a virtuous funding cycle.
Response to the Finances 2026/2027 by John Siu, Managing Director, Hong Kong, Cushman & Wakefield:
We agree with the Authorities’s resolution, having regard to prevailing market provide and demand circumstances, to proceed refraining from the sale of business websites within the coming 12 months. As on the finish of the fourth quarter final 12 months, the general availability charge of Grade A places of work in Hong Kong stood at roughly 20.3%. The short-term suspension of business land gross sales will enable the market to step by step soak up present vacant ground house and assist stabilise the workplace market. Nonetheless, the Authorities ought to assessment market circumstances frequently and resume the sale of business websites in a well timed method when applicable.
Concerning collaboration between the Hong Kong Funding Company and market capital to information funds in the direction of high quality industrial property tasks aligned with Hong Kong’s trade positioning, and to facilitate matching between such tasks and enterprises in goal sectors, we think about the general route to be optimistic and in keeping with market-oriented rules. This method can improve the effectivity of matching tasks with enterprises, present extra appropriate premises for rising industries resembling innovation and expertise and medical analysis, and inject new demand into the industrial property sector.
Sandy Ridge information facility cluster to boost Hong Kong’s information hub place
The Authorities has accelerated efforts to advertise the industrialisation of synthetic intelligence (AI), encouraging its wider adoption and deeper integration throughout industries. Over the long term, this may considerably improve demand for computing energy, thereby strengthening native absorption capability for high-specification information centre amenities.
Concerning the proposed information facility cluster at Sandy Ridge, which is able to present over 2.5 million sq. toes of gross ground space, this represents roughly 25% of Hong Kong’s present information centre inventory of round 10 million sq. toes, marking a uncommon large-scale provide in recent times. Ought to the undertaking be efficiently tendered, it would present the high-power capability and infrastructure essential to assist AI improvement, and in the long term improve Hong Kong’s place as an information hub inside the Better Bay Space and throughout Asia.
Strengthening Hong Kong’s Place as an Worldwide Maritime Hub and Responding Flexibly to Logistics Land Wants
The Authorities has proposed supporting the nationwide maritime strategic improvement, advancing the elevation of Hong Kong’s standing as a world maritime centre, and accelerating the sensible transformation of the logistics trade in addition to the growth of cargo hinterland. The reservation of roughly 32 hectares of land within the Hung Shui Kiu/Ha Tsuen New Growth Space for the event of a contemporary logistics hub will additional assist consolidate Hong Kong’s function as a world maritime centre. Nonetheless, we think about that in growing a contemporary logistics trade park, the Authorities ought to undertake a market-oriented, enterprise-centred method, in an effort to reply flexibly to the wants of companies and provide applicable incentives to draw enterprise participation.
Diversified Insurance policies and Steady Funding to Energise Retail Consumption and Leasing Market
We welcome the Authorities’s introduction of diversified initiatives and continued funding to advertise Hong Kong’s exhibition trade, incentive journey, revitalisation of historic buildings, worldwide cruise improvement, main sports activities occasions, harbourfront enhancement works and the “urban-rural integration” initiatives. Via these focused and wide-ranging programmes, Hong Kong will be capable of entice guests of various segments and spending energy, broaden its customer base and improve the general competitiveness of the tourism trade. We consider these measures will drive the event of excessive value-added financial actions, additional stimulate native retail consumption and invigorate the store leasing market, thereby injecting extra momentum into the general economic system and delivering long-term advantages.
We stay optimistic in regards to the medium- to long-term outlook for retail rents in Hong Kong. Because the related insurance policies are progressively carried out and tourism continues to strengthen, we count on retail rents to point out extra optimistic changes.
Response to the Finances 2026/2027 by Rosanna Tang, Government Director, Head of Analysis, Hong Kong of Cushman & Wakefield:
With the implementation of varied expertise admission schemes, the planning of the Northern Metropolis College City, and insurance policies aimed toward attracting excellent college students from around the globe to review in Hong Kong, demand for residential lodging and pupil hostels is anticipated to proceed rising.
The Growth Bureau earlier introduced the rezoning of three industrial websites in Kai Tak, Siu Lek Yuen in Sha Tin and Tung Chung East for post-secondary pupil hostel use, that are anticipated to supply round 4,500 hostel locations. The additional implementation of related measures on this Finances will assist alleviate the scarcity of hostel locations and, in the long term, ease rental strain within the residential market, supporting the wholesome improvement of the property market.
Nonetheless, as pupil hostel tasks usually are not permitted for strata-title sale and sometimes contain an extended payback interval, we advocate that the Authorities present applicable incentives within the land sale circumstances. For instance, precedence could possibly be given to websites situated close to post-secondary establishments, and better flexibility could possibly be supplied in land premium preparations or tender phrases to encourage energetic participation by builders.
Northern Metropolis College City
Concerning improvement of Northern Metropolis College City, the Authorities has demonstrated its dedication to expediting the event of upper schooling and advancing the “Research in Hong Kong” initiative by granting three websites within the Hung Shui Kiu/Ha Tsuen New Growth Space and earmarking HK$10 billion in loans to assist campus development. It will assist additional improve Hong Kong’s total attractiveness as a regional schooling hub.
We hope that, as pupil consumption and campus websites are launched into Hung Shui Kiu/Ha Tsuen, they are going to be intently aligned with the district’s trade positioning and purposeful roles, producing synergy. On the similar time, a transparent division of roles and complementary improvement needs to be established with future schooling websites to be launched in Ngau Tam Mei.
Response to the Finances 2026/2027 by Tom Ko, Government Director, Head of Capital Markets, Hong Kong of Cushman & Wakefield:
We assist the Authorities’s continued efforts to strengthen expertise admission from each Mainland and abroad markets. Nonetheless, this 12 months’s Finances didn’t set out concrete measures to help incoming expertise in buying properties in Hong Kong. We advocate a calibrated adjustment of the funding threshold and an growth of the classes of qualifying funding properties. As an alternative of proscribing funding solely to non-residential belongings, the Authorities might think about prudently incorporating chosen residential properties into the scope.
On the similar time, we suggest a assessment of the banking and mortgage restrictions utilized to non-local buyers, with a view to enhancing flexibility in capital deployment and circulation. These refinements would assist entice extra worldwide capital and excessive‑calibre expertise to determine a protracted‑time period presence in Hong Kong.
Prudent Adjustment of Stamp Obligation on Luxurious Residential Properties
Concerning the Authorities’s improve in stamp obligation on residential property transactions exceeding HK$100 million, and in keeping with the “reasonably priced customers pay” precept, we think about the adjustment to stay at a rational stage. Nonetheless, within the quick time period, it could lead some potential patrons to defer their buying choices. We consider that when the market has adjusted, transaction momentum within the luxurious residential section ought to stay resilient. We might encourage the Authorities to proceed exercising prudence in adjusting stamp obligation charges on luxurious properties, in order to not undermine the general attractiveness of Hong Kong’s property market.
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