Opinion | A business district in Hong Kong’s rural north is the answer to its quest for land and development
- Lucy Kwan and Siu Yee Man say a second business hub would not only complement the plan for housing, but also create jobs, add value for property owners, ease congestion in the south, and strengthen economic links with the Greater Bay Area
Hong Kong undeniably faces a severe shortage of readily available land for development. Although three-quarters of its land is not built up, only a small portion is readily available for development, either due to environmental preservation considerations, complications in land resumption, or statutory restrictions for reclamation.
Land shortages and other factors, such as the historically low interest rates and free capital flows, have pushed property prices to extremely high levels. While private property prices reflect economic success, the escalation of prices for commercial and industrial land will constrain further economic growth.
To address this urgent issue, it is important to build up Hong Kong’s capacity in the near, medium and long term. In particular, industrial needs have never been properly assessed with realistic recognition of the changing requirements and rational spatial distribution over the whole of Hong Kong. We need to assess the costs and benefits of different options of potentially high-development areas, in terms of infrastructural investment, social and environmental impact, and housing and other needs.
Taking all this into consideration, Hong Kong should build a second central business district in the northern part of the New Territories as it could create great economic value for otherwise backyard rural land with a low valuation. It would be a cost-effective way to invigorate slowing economic development due to a shortage of land.
