Advertisement
China’s private sector
BusinessChina Business

Why Hong Kong’s major developers stayed out of Northern Metropolis’ first pilot tender

Limited bids suggest government’s new land-sale model asks developers to do more than build homes, testing a role outside their expertise

3-MIN READ3-MIN
Listen
An artists impression of the Hung Shui Kiu/Ha Tsuen new development area, part of Hong Kong’s Northern Metropolis. Photo: handout
Peggy Ye
Hong Kong’s first Northern Metropolis pilot tender drew only two confirmed bidders on Friday, underscoring the challenge facing the government’s effort to enlist private developers in delivering not only homes but also its broader technology and industrial ambitions.
Henderson Land Development submitted the only stand-alone bid, while Sino Land teamed up with four mainland developers and Chinese e-commerce giant JD.com in a consortium.

Three other major developers – CK Asset, New World Development and Sun Hung Kai Properties – did not participate. Sun Hung Kai Properties declined to comment on the matter and the other two developers did not respond.

The limited response suggests developers were deterred by more than Hong Kong’s prolonged property downturn.

The Hung Shui Kiu pilot marks the government’s first attempt to sell land under a model that requires developers to build an innovation ecosystem alongside residential projects, taking on responsibilities many in the industry say fall outside their traditional expertise.

Unlike conventional land sales, the pilot adopts a “two-envelope” system under which 70 per cent of the bid assessment is based on non-price factors – including proposals to develop technology industries, attract strategic enterprises and create jobs – while only 30 per cent is determined by the land premium.

Advertisement
Select Voice
Select Speed
1.00x