Northern Metropolis will boost New Territories’ housing prices
Housing prices in the north and north-west New Territories grew 28.6% over the past 5 years
HONG KONG, 2 November 2021 – Housing prices in Northern Metropolis area will have higher upside potential than the rest of Hong Kong due to the government’s Northern Metropolis development vision, according to JLL's Hong Kong Residential Sales Market Monitor released today.
The latest policy address unveiled the plan to develop the northern and north-western part of the New Territories into the Northern Metropolis. Housing demand in the Northern Metropolis and the New Territories as a whole is expected to grow in the years to come as Northern Metropolis is expected to provide 650,000 employment opportunities and accommodate 2.5 million people, almost three times the current population.
Figures from JLL showed that the housing price gap between the New Territories and Kowloon has narrowed over the years. Moreover, JLL mass residential price index shows that prices in northern and north-western New Territories have increased by 45.8% between 2011 and 2015, compared to 47.7% in Kowloon.
However, Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL in Hong Kong, said: “The enhanced infrastructure and amenities have driven the housing prices in northern and north-western New Territories to rise faster in recent years. From 2016 to 2020, prices there rose by 28.6%, while Kowloon residential prices grew 25.2% only.”
Nelson Wong, Head of Research at JLL in Greater China, said: “In the short term, with land and housing supply unlikely to rise notably while investors potentially starting to front run the market, property prices in the Northern Metropolis will have higher upside potential than the rest of Hong Kong.”
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