Private housing in Northern Metropolis to outperform
Only 13,000 private flats in Northern Metropolis scheduled for completion in 2023-2027
HONG KONG, 2 November 2022 – The development of the Northern Metropolis will boost the residential demand in the area. In the next five years, about 13,000 private housing units in the North Metropolis are scheduled for completion, with over 30% already pre-sold, and the tight new supply will support prices in the area to outperform the overall market, according to JLL's Hong Kong Residential Sales Market Monitor released today
The situation of tight new private housing supply is particularly obvious in the North District. According to the projections of population growth from the Planning Department published in March 2021, the population of the North District in 2023-2027 will grow by 36,900, while the private housing supply is estimated to increase by about 4,500 units during the same period.
Nelson Wong, Executive Director of Research at JLL in Hong Kong, said: "The Policy Address has released more details about the Northern Metropolis development plan. The area will directly benefit from the Northern Metropolis Highway, the Central Rail Link and the Hong Kong-Shenzhen Western Rail Link. These projects will enhance the area's connectivity and accessibility and support future developments. Naturally, with significant expansion in the transportation network alongside the population intake, demand for residential properties will surge. The area is also envisaged to be another key employment centre of the city as the government has demonstrated its resolve by expediting the development of the San Tin Technopole and announcing the relocation of 40% of the office floor area at the Queensway Government Offices to the Northern Metropolis. This will drive housing market as a result."
According to JLL's data, the capital value of private housing in Kowloon dropped 7.5% over the past 12 months, while the capital value of private housing in Yuen Long and North District only dropped 5.2%.
Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL, said: "The Northern Metropolis' housing prices outperformed Kowloon, a sign of buyers' confidence in the market amidst market downturns. Buying demand of private housing in the area, which is set to be the economic growth engine of the city, is expected to grow amid the positive outlook of the area."
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