Hong Kong’s famed skyscraper-packed skyline may soon have a rival across the border in its Northern Metropolis. Billed as Hong Kong’s “next engine of growth,” this massive development in the northern New Territories is poised to transform farmlands and new towns into a thriving commercial hub. Upon full development, the Northern Metropolis is expected to create about 500,000 new jobs for the city. For businesses seeking the perfect office space – from startups to multinationals – this up-and-coming zone offers exciting opportunities. In this post, we’ll explore the Northern Metropolis’s strategic location, infrastructure plans, sector-by-sector potential, and how it stacks up against Hong Kong’s traditional CBD, guiding you through Hong Kong’s new frontier.
Strategic Location and Infrastructure Advantages
Situated along Hong Kong’s border with Shenzhen, the Northern Metropolis enjoys a strategic location at the heart of the Guangdong–Hong Kong–Macao Greater Bay Area. It spans a vast 30,000 hectares (300 sq. km) across the New Territories, encompassing new development areas in Yuen Long, Tin Shui Wai, Fanling, and more. Being “just one river away” from Shenzhen means unparalleled cross-border synergy – the metropolis is adjacent to Shenzhen’s booming Qianhai and Nanshan districts, providing a gateway for collaboration in finance, technology, and logistics. This proximity allows companies in the zone to tap into Shenzhen’s innovation ecosystem while maintaining a Hong Kong base, truly bridging the two cities.
Crucially, the Northern Metropolis plan is infrastructure-led, with railways as its backbone. Multiple new transport projects are in the pipeline to boost connectivity. The upcoming Northern Link railway will connect existing east-west rail lines, linking new towns and unlocking transit-oriented developments. Additionally, Hong Kong is investing HK$100 billion by 2031 in expanding its rail network – including planned cross-border lines from Hung Shui Kiu to Qianhai (Shenzhen) and from the San Tin Technopole to Shenzhen’s new Huanggang port. These rail links, along with new highways and border control point upgrades, will ensure the Northern Metropolis is well-connected both to Hong Kong’s urban core and to mainland China. Such infrastructure upgrades are game changers, making the area easily accessible and attractive for businesses and commuters alike.
HKSAR Government Support and Development Plans
The Northern Metropolis isn’t just a spontaneous boom – it’s a flagship policy vision championed by the Hong Kong government. First announced in the 2021 Policy Address, it has since been backed by detailed planning and high-level coordination. In late 2023, the government published the Northern Metropolis Action Agenda, a blueprint outlining the development timeline, zoning, and industry positioning for the area. The plan adopts an “industry-driven and infrastructure-led” approach, with the government actively providing land and infrastructure to meet different industries’ needs. A dedicated Northern Metropolis Co-ordination Office has been set up to fast-track approvals and investments, underlining strong policy support at all levels.
This support is already attracting significant private-sector interest. In November 2024, 85 enterprises from Hong Kong, mainland China, and abroad – spanning real estate, innovative technology, logistics, telecommunications, finance and more – signed letters of intent to participate in Northern Metropolis projects. Major Hong Kong developers (CK Asset, Sun Hung Kai, Henderson, New World, etc.) have pledged involvement, alongside Mainland tech and finance giants. As Chief Executive John Lee noted, the northern region’s “vast land and clear industry positioning” promise high-quality business opportunities across every sector. The government is also kick-starting development by designating pilot land parcels in new areas (such as Hung Shui Kiu, Fanling North and San Tin) for tender in 2025, each blending commercial elements with infrastructure or public facilities. In short, public policy and investment are aligned to turn the Northern Metropolis vision into reality, giving confidence to investors and office seekers that this “new frontier” is here to stay.
Opportunities Across Office, Retail, Logistics, and Mixed-Use Sectors
With solid groundwork in place, what does the Northern Metropolis offer across different commercial real estate sectors? Let’s break down the development potential in office, retail, logistics, and mixed-use:
- Office & Innovation Hubs: The Northern Metropolis is slated to become a vibrant hub for innovation and technology (I&T) industries. A massive 300 hectares in the San Tin Technopole is reserved for I&T development, capable of accommodating 7 million m² of floor area (equivalent to 17 Science Parks) – a huge boost to Hong Kong’s office and R&D space supply. New business districts are planned near the Shenzhen border (e.g. the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop) to foster R&D, startups, and tech giants in a campus-like environment. Professional services and finance firms are also targeted: the western zone at Hung Shui Kiu is positioned as a high-end professional services centre to complement Shenzhen’s Qianhai zone. For office tenants, this means ample Grade A space in modern complexes, often at a lower cost (more on pricing below) yet with the benefit of cutting-edge infrastructure and proximity to Shenzhen’s talent and markets.
- Retail & Leisure: With a planned population of 2.5 million residents in the Northern Metropolis, the retail sector is poised for robust growth. New towns like Kwu Tung North, Fanling North, and the New Territories North New Town will need everything from shopping malls and supermarkets to restaurants and entertainment venues. The development plan explicitly calls for retail, financial services, and leisure facilities in the Boundary Commerce and Industry Zone near new border towns. This suggests future cross-border retail hubs that can serve local residents and visiting Shenzhen consumers alike. Retail developers can take advantage of larger land plots to build spacious malls or outlet centers that are rare in the dense urban core. With an emerging middle-class community and increased foot traffic between Hong Kong and Shenzhen, retailers can expect a ready customer base in this new metropolis.
- Logistics & Industrial: Northern Metropolis will also be a game-changer for Hong Kong’s logistics sector. Its location puts it adjacent to key land border crossings and the regional transportation network – ideal for warehouses, distribution centers, and modern industrial parks. In fact, the Hung Shui Kiu/Ha Tsuen area is set to become a major logistics hub, with 70+ hectares of new logistics land planned. The Hung Shui Kiu New Development Area alone could yield about 45 million sq. ft. of industrial/warehouse space to accommodate modern logistics and the relocation of existing brownfield operations. This expansion addresses the chronic shortage of logistics facilities in Hong Kong and will attract 3PL providers, e-commerce fulfillment centers, and supply chain firms. Coupled with new rail links (like a direct connection to Shenzhen’s Qianhai port) and highways, companies will enjoy efficient connectivity for freight. The Northern Metropolis’ logistics prospects are thus very strong – offering vast capacity that traditional industrial areas in Hong Kong (with limited land) simply cannot match.
- Mixed-Use Developments: A hallmark of the Northern Metropolis plan is its emphasis on mixed-use, integrated communities. Rather than isolating business districts, the masterplan envisions new towns that blend offices, retail, and residences, creating self-contained live-work-play environments. For example, Kwu Tung North will primarily provide housing but also reserve land for a government joint-user office complex to stimulate local employment. Future commercial centers are likely to be part of mixed-use projects – think office towers atop retail podiums, adjacent to housing and green parks. This integrated approach means companies setting up offices in the Northern Metropolis will find modern amenities, housing for staff, and lifestyle facilities at their doorstep. It also encourages a vibrant community vibe after work hours, unlike some traditional CBDs that empty out at night. Investors can expect opportunities in large-scale projects that combine multiple uses (e.g. an innovation campus with co-working spaces, labs, shops, and apartments). The flexibility of land in the North allows visionary mixed-use developments at a scale hard to achieve in Central. Overall, the Northern Metropolis promises holistic urban nodes where businesses and people can thrive together.