HONG KONG SAR – Media OutReach Newswire – 17 September 2025 – Response to the Policy Address 2025/26 by KK Chiu, International Director, Chief Executive, Greater China of Cushman & Wakefield:
Housing Supply and Land Policy
Optimize land resource allocation and accelerate public housing supply
The land allocation policies in Hong Kong have a significant impact on the lives of residents. We commend the government’s proactive approach to promoting Light Public Housing and various subsidized options in recent years, which have collectively improved living standards. While we recognize the government’s efforts to address housing needs, we emphasize the necessity for continuous increases in public housing supply as well as the accelerated turnover and allocation of housing resources.
A major challenge in land development remains the persistently high construction costs. We are encouraged to see the government pursuing a multifaceted strategy to reduce these costs and improve process design.
In this regard, we advise the government to allocate resources—financial, human, and otherwise—more efficiently and promptly. It should also strengthen communication with the central government to secure centralized procurement benefits that cater to Hong Kong’s requirements, thus minimizing core expenses such as construction materials and equipment, leading to improved cost efficiency overall. This strategy would expedite land supply and foster a more stable and affordable development environment.
We support the government’s adaptable approach to urban renewal, particularly the relaxation of cross-district plot ratio transfer arrangements. This can enhance incentives for redevelopment and effectively minimize disputes over land resumption and compensation, facilitating smoother implementation of redevelopment projects.
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In addition to the ongoing increase in public rental housing construction, it is encouraging to witness the government presenting home ownership opportunities for families with moderate incomes. The significant increase in Home Ownership Scheme (HOS) flats, along with the expanded Green Form quota ratio, will enable more public rental housing tenants to purchase their homes. At the same time, this allows other applicants on the public housing waiting list to be housed sooner, creating a mutually beneficial scenario.
Furthermore, we are pleased to note the Housing Authority’s initiative to add another 1,000 quotas for eligible applicants under the “White Form Secondary Market Scheme.” Half of these will be designated for young families and individuals under 40, helping them achieve their dreams of homeownership.
Response to the Policy Address 2025/26 by Alva To, Vice President, Head of Consulting, Greater China of Cushman & Wakefield:
Northern Metropolis Development
From “Supervision” to “Development”: The Northern Metropolis Enters a Critical New Phase of Implementation
We are pleased to see the Northern Metropolis officially transition from the “supervision” phase to the “development” stage, with the establishment of the new “Northern Metropolis Development Committee,” led by the Chief Executive. This organizational change signifies a shift in policy focus and demonstrates the government’s strong commitment to implementing the project. The creation of three dedicated working groups will greatly enhance planning coordination, execution efficiency, and regulatory capacity, laying a solid foundation for the tangible development of the Northern Metropolis.
I. Development and Operation Model Design Group: The Core Driver for Landing Mainstream Industries
- Operation-First, Construction-Led: This group is responsible for promoting the introduction and operation of mainstream industries, including the formulation of public-private partnership models such as “Build-Operate-Transfer” (BOT). This initiative reflects the government’s recognition that the Northern Metropolis’s success depends not only on construction but also on sustainable operations and industrial establishment.
- Incorporating a Technology-Oriented Approach in the “Two-Envelope Approach”: We support the government’s implementation of the “two-envelope approach” and recommend increasing the focus on the technical bid. This would prioritize the quality of industrial proposals, long-term commitments, and implementation capabilities as the main evaluation criteria.
- Introducing the “1.5-level development” Model: The “1.5-level development” concept emphasizes the initial establishment of amenities for entertainment, dining, and MICE (Meetings, Incentives, Conferences, and Exhibitions), as well as preparing for the cultivation of mainstream industries in early phases. We recommend conducting research and establishing the positioning of these industries first. In the initial phase, developing ancillary facilities with lower intensity and investment can support industry growth. After several years of incubation, we aim to attract population flow and industry elements, allowing for the next phase of development once these industries mature.
- Adopting Flexible Land Development Models: We applaud the government for embracing diverse land grant methods, including leases, open tenders, restricted tenders, and direct grants, alongside industry-specific conditions to accelerate high-potential projects. We welcome the government’s encouragement of broad market participation in constructing the Northern Metropolis, thereby enhancing the efficiency and accuracy of land allocation.
II. University Town Planning and Construction Group: Building the “Talent Engine” Behind Industrial Development
- Mutual Empowerment of Education and Industry: The University Town will act as a hub for talent development and a platform for innovative research and high-value industries. Universities create a powerful “enabling effect” by not only exporting talent but also advancing mainstream industries to higher technological and knowledge standards.
- Construction of a Research Commercialization Platform: The government is encouraged to leverage universities to foster scientific research and attract local and international academic resources, establishing the Northern Metropolis as a center for innovative talent.
III. Planning and Development Working Group: The Key Force for Implementing Hardware Infrastructure and Managing Pace
Hardware construction plays a crucial role in supporting the industrial and demographic development of the Northern Metropolis. We are delighted to see the government establish a dedicated working group to coordinate planning, land, transport, engineering, and environmental concerns to ensure synergistic development across functional areas. We recommend prioritizing transport hubs, living amenities, and public services to align with the simultaneous growth of industries and population, thereby avoiding “ghost towns” or “hollowed-out industries.” Additionally, the government should create a clear timeline and phased reporting mechanism to improve project transparency and execution, thus minimizing delays and resource misallocation.
Response to the Policy Address 2025/26 by John Siu, Managing Director, Hong Kong, Cushman & Wakefield:
Retail Market
Supporting Pet-friendly Policies to Promote Diversified Development of the Retail Property Market
We welcome the government’s initiative for pet-friendly policies, which we believe will broaden customer traffic and legitimize existing operating models. Once implemented, these policies have the potential to attract a wider range of clientele and enhance the overall consumer experience.
Several malls have already positioned themselves for the “pet economy,” establishing pet-friendly zones and incorporating pet retail and grooming services. As these policies take effect, we foresee more malls turning into pet-friendly spaces, unlocking new customer segments and increasing dwell time, thus expanding market opportunities for retail and F&B—creating new avenues for growth.
Data Centre
Support Launching the Sandy Ridge Data Facility Cluster Land Tender to Consolidate Hong Kong’s Status as a Regional Data Centre Hub
We applaud the government’s launch this year of the land tender for the Sandy Ridge Data Facility Cluster, further solidifying Hong Kong’s position as a regional data center hub and fostering related industry growth. Given that infrastructure such as water supply, power capacity, fiber-optic networks, and transport is critical for data center operations, we recommend that the government clearly outline completion timelines and technical specifications in the tender documents. This improvement would enhance project transparency, build market confidence, and assist investors and operators in evaluating investment costs and completion dates.
Response to the Policy Address 2025/26 by Rosanna Tang, Executive Director, Head of Research, Hong Kong of Cushman & Wakefield:
Building an International Education Hub and Improving Student Accommodation
We support the government’s decision to increase the cap on self-financed non-local students at publicly funded post-secondary institutions from 40% to 50% of local intake. This will enhance admissions flexibility, strengthen the international competitiveness of Hong Kong’s educational sector, and boost the local economy.
Recent data indicates that the number of non-local students at the bachelor’s level and above reached 89,000 in the 2024/25 academic year, marking a 24% increase from 72,000 in 2023/24. However, the student-to-bed ratio at eight UGC-funded universities stands at 3.4:1, revealing a significant shortage. Following the new policy, we estimate that the demand for student accommodation in Hong Kong could exceed 70,000 beds.
We welcome the government’s acceptance of recommendations from our earlier research report “Hong Kong Talent Housing Part Two: Student Accommodation,” specifically reserving new commercial or other land for purpose-built Student Accommodation (PBSA), with additional details to be disclosed within the year. This commitment to augmenting bed supply in the medium to long term will activate existing building stock and ultimately contribute to a comprehensive education-support ecosystem, enhancing Hong Kong’s appeal as an international education hub.
Capital Market
Support for Easing Investment Thresholds and Extending Trading Hours to Promote Market Diversification
We advocate reducing restrictions in the “Capital Investment Immigration Scheme” related to including purchased residential and non-residential properties as part of the investment amount. We believe this change will attract more investors to Hong Kong and invigorate turnover in the high-end residential and non-residential property markets, providing fresh momentum to the capital market.
Support for Relaxing the Exemption Arrangement for Car Park Gross Floor Area
We appreciate the government’s adjustment to car park construction requirements in new projects, allowing for more flexibility that eliminates the need to place car parks in basements due to gross floor area constraints. This change could relieve project development challenges and reduce costs for developers—ultimately making parking spaces more affordable over time.
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