Proposed HK$1 trillion East Lantau Metropolis is the answer to Hong Kong’s future land needs
- Backing the East Lantau Metropolis is in the interest of Hongkongers as it can accommodate most of the city’s future needs in one place
- Government can generate more than the reclamation cost from land sales, according to estimates from the Hong Kong Institute of Surveyors
The Hong Kong Institute of Surveyors (HKIS) has estimated the total land value of the proposed East Lantau Metropolis. The 1,000 hectares of land to be reclaimed under phase one of Lantau Tomorrow Vision is valued at HK$1.14 trillion (US$145 billion), and this does not even include any potential revenue from subsidised housing. And even though the reclamation cost is estimated at HK$1 trillion, HKIS deems the project to be economically justifiable.
We believe the debate on its underlying economics will never end even if the reclamation and infrastructure costs can be recovered through a land disposal programme spanning 10 to 20 years from the commencement of reclamation in 2025. Nevertheless, it is important for the public to contemplate there are many other social benefits and development opportunities that can be brought about by this long outstanding creation of land.
Public housing estates
Seven public rental estates, comprising 20,600 units, are over 50 years old and ready for redevelopment. Yet, it has taken over four years to go through the town planning process to identify a feasible relocation site for the 9,100-unit Wah Fu Estate alone.
The 7,400-unit Choi Hung Estate is facing the same challenge to dig out a massive relocation site.
The Housing Authority currently budgets over HK$3 billion per year on maintaining public rental estates and this cost is bound to skyrocket when the call for maintenance becomes more frequent and the scale larger.
