Hong Kong authorities should immediately halt plans to build three artificial islands in waters off Lantau as the scheme may drive down bidding prices for land in the Northern Metropolis megaproject, a representative of the city’s major developers has said.
Louis Loong Hon-biu, a lawmaker and also the secretary general of the Real Estate Developers Association, made the remarks in an interview with the Post, saying the government could not support both megaprojects simultaneously.
Loong said that developers might be conservative when offering bids for land in the Northern Metropolis in this situation. He was referring to the reclamation project to build three artificial islands near Kau Yi Chau, previously known as the Lantau Tomorrow scheme, and the development in the northern New Territories near the border with mainland China.
“The government should make it a clear policy declaration that it will not develop the artificial islands project in the near term or permanently halt it,” Loong said.
“If the government is not making a clear stance on halting the artificial islands project, it will affect bidding prices for the Northern Metropolis.”
He said developers needed to consider how their investments would be affected by the overall land supply in the city.
Developers might be conservative when offering their bids in this situation, he said.
Pressure on the government to delay or even give up the reclamation project is mounting as the city grapples with a huge fiscal deficit, while Beijing has been urging senior officials to speed up development of the Northern Metropolis.
The HK$580 billion (US$74.4 billion) artificial islands project, first floated more than a decade ago, will create the city’s third central business district, accommodating up to 210,000 homes for 550,000 residents.
Meanwhile, the Northern Metropolis scheme, which includes a new innovation hub called the San Tin Technopole, aims to turn 30,000 hectares (74,132 acres) of land into a new engine for economic growth with a population of about 2.5 million and around 650,000 jobs.
Addressing Loong’s question on whether the government would put on hold the reclamation project at a Legislative Council meeting earlier this month, Financial Secretary Paul Chan Mo-po said that authorities would focus on developing the Northern Metropolis.
Chan added that the government would continue studying the artificial islands so that it would be well informed if it decided to proceed with the project.
Loong said the finance chief’s answer indicated that the government had partially given up on the project.
He added that developers did not oppose the artificial islands project when it was introduced, but the timing for launching the plan was completely different now, citing the government’s financial ability.
Asked if the government should stop feasibility studies on the artificial islands project, which have cost around HK$640 million, he said authorities had already engaged consultancy firms to work on it and halting them would breach the contracts.
Last October, Secretary for Development Bernadette Linn Hon-ho said the government hoped to start reclaiming 1,000 hectares of land in waters off Kau Yi Chau in 2027, two years behind the schedule set by the administration when it took office in 2022.
In January, she declined to set a start date.
Authorities also said earlier this year that they would prioritise certain projects, such as the Northern Metropolis, after the finance chief warned of impending belt-tightening.
In terms of the Northern Metropolis, Chief Executive John Lee Ka-chiu said last month that authorities were exploring further legal amendments to expedite the development, as there was a “burning urgency” to build the economic powerhouse near the border.
While Loong did not see a need to pass a new law, he said there was room to speed up the administrative procedures, and called for a department or body to be authorised to make decisions on the project.
Meanwhile, Beijing’s point man overseeing Hong Kong affairs, Xia Baolong, will begin a five-day visit to the city on Wednesday. He will inspect the city’s development, including the progress of the Northern Metropolis, according to sources.
Asked if Xia’s arrival would put pressure on developers to advance the Northern Metropolis, Loong said investors had “no pressure and must support the Northern Metropolis”.
But he cautioned that businessmen were good at calculations and would only bid according to market rates.
Lawmaker Andrew Lam Siu-lo, who is also a planner, emphasised the importance of the artificial islands.
“The islands project can provide not only new land supply but also link the transport networks with the entire city,” he said, referring to its connection with Hong Kong Island and the Northern Metropolis to support the logistics industry.
He added that he saw no reason for developers to lack interest in bidding if they believed that Hong Kong had a promising future.
In a reply to the Post, the Development Bureau said multiple factors influenced developers’ interest in the Northern Metropolis. It stressed that investment decisions were often complex and not solely driven by a single consideration.
The bureau added that preparing the Kau Yi Chau project for implementation at the right time in the future might not necessarily reduce developers’ interest in the Northern Metropolis.
“A responsible government must be able to take the lead in steering the pace and quantum of land supply to meet various needs of the community, instead of acting purely based on feedback from property developers,” it said.
