北部都会区洪水桥首个试点区由内地国企+信和+京东联合体中标，分析师评论利润率微薄

Mainland Chinese enterprises will play a key role in developing Hong Kong’s Northern Metropolis by sharing financial risks and helping align the megaproject with national strategy, according to real estate and political advisers.
Their analysis followed the award of the blueprint’s first pilot area in Hung Shui Kiu to HSK New Development, a consortium led by five mainland giants and local developer Sino Land on Monday.
Pledging an investment of HK$16.8 billion (US$2.14 billion), the consortium will develop sites totalling 10.5 hectares (25.9 acres) at a low land premium of HK$1.03 billion. It beat the only competitor, a stand-alone bid from Henderson Land Development.
The mainland contingent comprises four state-backed developers – China Overseas Land & Investment, China Merchants Land, China Resources Land (Overseas) and CTG Investment – with decades of experience, alongside e-commerce and technology titan JD.com.
Jeffrey Lam Kin-fung, chairman of the board of directors of the Hung Shui Kiu Industry Park Company – a government vehicle created to drive the district’s development – noted that pooling top players across real estate, construction and hospitality would accelerate development.
“Each of the six companies has a special role to play, which will contribute to the holistic development of the Northern Metropolis,” he said.
While analysts attributed the participation of mainland heavyweights to national priorities, technical expertise and familiarity with the local market, real estate advisers stressed that future tenders would require greater flexibility and longer bidding windows to encourage more competition.

Lau Siu-kai, a consultant for the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said mainland firms would emerge as key players in the Northern Metropolis, a 30,000-hectare mega development close to the city’s border with the mainland set to be transformed into an economic powerhouse and housing hub.
“Beijing has encouraged mainland Chinese companies to participate and help transform and upgrade Hong Kong’s industry development. They also have more experience in promoting and planning new quality development forces,” he said, referring to China’s growth model focused on technological breakthroughs and industrial upgrades.
“While Chinese firms can help Northern Metropolis development better align and serve national development strategies, they can also organise their businesses in Hong Kong, the mainland and overseas.”
He added that it was unrealistic to expect a major influx of investment from the West into the Northern Metropolis amid geopolitical tensions, noting that Western countries too needed investments for development.
Lau Chun-kong, chairman of the Hong Kong Institute of Surveyors’ land policy panel, said the consortium had “formidable financial strength” and an edge across a range of services.
He noted that Sino Land had solid cash flow in Hong Kong’s real estate sector to support the pilot area in Hung Shui Kiu, which is envisioned as a future high-end professional services and logistics hub.

Under the tender terms, HSK New Development will carry out extensive site formation across the 10.5-hectare area, retaining three residential plots totalling 2.6 hectares to deliver more than 3,000 private flats.
According to the consortium, the residential sites will feature over 100,000 sq ft of commercial space, incorporating smart retail concepts and unstaffed supermarkets.
The master plan prioritises natural ventilation and optimal sunlight exposure, backed by renewable energy installations and advanced carbon-reduction technologies.
All parking spaces will provide electric vehicle charging capabilities alongside smart access control and automated parking systems, while individual homes will be equipped with smart systems driven by artificial intelligence (AI).
The consortium will construct a smart logistics hub on a one-hectare enterprise and technology (E&T) plot, with JD.com required to operate at least 15,300 square metres (161,458 sq ft) – roughly 30 per cent of the gross floor area – within 55 months.
The facility will also feature hi-tech logistics operations, including autonomous delivery systems.
The consortium will return two E&T plots and a government, institution or community site to the authorities by 2028 after completing site formation works.
It will also develop a 1.44-hectare open space and build a footpath and a pedestrian street for the government in phases by 2030-33.
Kathy Lee, head of research and retail consultancy at Colliers, noted that pooling diverse capital sources mitigated risk, following the local property market downturn.
“Eventually, it is a relatively long-term project … It involves [industry], residential and infrastructure development. Having various sources of capital and having companies to supplement one another can minimise the risks,” she said.

Lee also said she believed mainland firms would play a key role in future pilot projects, noting that the four state enterprises had long operated in Hong Kong while JD.com had steadily built up its local presence.
She said established players had a stronger grasp of the local market than newcomers, while geopolitical factors also worked in their favour.
“A long-term investment in Hong Kong by American and European businesses remains an uncertainty given the geopolitical developments in recent years,” she added.
To accommodate the needs of different enterprises, Lee suggested that the government could allow phased industry development in future pilot area projects.
She noted that nascent enterprises might require smaller floor areas while technology firms would be reluctant to share facilities with other competitors.
Hannah Jeong, head of valuation and advisory services at CBRE Hong Kong, highlighted that while the land premium was relatively low at HK$1.03 billion, the estimated development cost was HK$16.8 billion, due to requirements to form extensive sites and build facilities beyond residential homes.
She noted that while the model remained financially viable, profit margins would be slim.
“The residential profits are expected to fund and support the broader innovation-focused development,” she said.
She suggested lengthening the tender period for future pilot areas beyond six months.
“Given the complexity of these developments and the need to combine technology operators, investors and residential developers, the market requires adequate time to establish the right partnerships and formulate viable business models,” she said.
Jeong said that some enterprises had earlier expressed interest in the pilot area but were unfamiliar with the tendering process, noting that mainland firms often had slower decision-making processes.
She also urged the government to promote tenders more actively to non-local companies.
The government is expected to roll out pilot areas in the future innovation hub in San Tin and the border commerce district in Fanling North, though updated tender dates for the projects – originally set for 2025 and 2026 at the earliest – have yet to be announced.