Hong Kong Northern Metropolis Residential Sales See Middling Start

The first residential sales in the Northern Metropolis, a multibillion-dollar project designed to transform rural land into a technology hub near the mainland Chinese border, have seen a middling start. Wheelock Properties Ltd. sold 56 of 100 available apartments at its Park Silicon project in Kwu Tung on August 16, with average prices exceeding HK$17,000 per square foot.

These prices rival urban areas like West Kowloon and are considered aggressive because full metro connectivity to the region is not expected until 2034. The high costs are attributed to steep land prices paid by developers in 2021. The broader success of the development depends on attracting startups and residents to an area currently composed of villages and farmland.

Other developers are preparing to enter the market, including Henderson Land Development, which is preparing to sell 682 units at the North Innovale project, and Sun Hung Kai Properties, which has applied for presale consent for a 642-home development. The project faces headwinds from a slowing economy, high interest rates, and recent restrictions by Beijing on offshore investments by mainland Chinese citizens, who typically account for half of first-hand residential sales by value.