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Hong Kong property
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Hong Kong seeks to raise plot ratios, building heights at Northern Metropolis projects to ease housing shortage

  • Relaxing plot ratios generally implies more housing supply, Knight Frank analyst says
  • The government has applied to raise the plot ratio of private housing parcels by up to 20 per cent, and that of public housing sites by up to 30 per cent, where feasible

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Aerial view of Kwu Tung in Hong Kong’s New Territories. Photo: May Tse
Lam Ka-singandSandy Li
The Hong Kong government has applied to relax plot ratios and building height restrictions at 37 parcels of land by up to 30 per cent in northern Fanling and Kwu Tung, as part of its Northern Metropolis development plan to boost the city’s housing supply.
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The Civil Engineering and Development Department submitted two applications seeking approval from the Town Planning Board this week, which, if cleared, could yield 58,439 homes – 24,929 in Fanling North and 33,510 in Kwu Tung North – according to documents provided by the board. The total number of homes would increase by more than 13,000, or 28.8 per cent, according to estimates by Hong Kong Economics Times. This would include an increase of more than 7,000 units for Kwu Tung North and about 6,100 for Fanling North.

“The government wants to provide higher per capita living spaces for Hong Kong residents, as the [city] … is currently behind most leading Asian cities such as Shenzhen, Tokyo and Singapore,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank. “Relaxing plot ratios would in general imply more housing supply.”

According to “Hong Kong 2030+”, a study published last October, the current average living space per person in Hong Kong is only 161 sq ft. The city lags behind Tokyo’s 210 sq ft, Singapore’s 270 sq ft and Shenzhen’s 300 sq ft.

This week’s applications also comes after Chinese President Xi Jinping instructed John Lee Ka-chiu, Hong Kong’s new leader, on the 25th anniversary of the city’s handover to China that his administration should “strive to deliver” what “the people of Hong Kong desired – a better life, a bigger flat, more business start-up opportunities, better education and better elderly care”.
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“A 30 per cent [plot ratio] increase is significant. The improved plot ratios will increase housing supply,” said Norry Lee, senior director at JLL. “I believe most of the mass market demand is targeting the New Territories. An increase in supply of around 58,000 units will help ease housing prices,” he added.

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