CK Asset and Henderson Land set to launch housing projects in proposed Northern Metropolis

·4-min read

CK Asset Holdings and Henderson Land Development are likely to see to huge interest in their upcoming projects in the northern New Territories, as investors bet on an improvement in infrastructure in the area following the announcement of the proposed Northern Metropolis.

The two projects will provide close to 2,000 units in Hung Shui Kui and Fanling, close to the mainland border, which come under Chief Executive Carrie Lam Cheng Yuet-ngor’s Northern Metropolis plan that aims to have 2.5 million residents within 20 years. It will also include a “Silicon Valley” that will closely interact with neighbouring Shenzhen.

“We have received a surge in inquiries on home prices in areas close to these new projects, with some investors indicating they were interested in buying existing flats as a long-term investment in anticipation of upcoming projects that will be offered at higher prices,” said Ray Wong, manager at Ricacorp Properties’ Sheung Shui branch.

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Northern Metropolis or ‘castle in the air’?

CK Asset is about to kick off the marketing push for the #Lyos housing development comprising 341 units in Hung Shui Kui, which is expected to be served by a new rail link connecting Shenzhen’s burgeoning Qianhai economic zone. The rail link is as an extension of the planned HK$62 billion (US$8 billion) Northern Link to cater for the newly announced eightfold expansion of Qianhai.

The #Lyos development is expected to be completed in September 2023, but there is no concrete timetable on the completion of the rail link connecting Hung Shui Kui to Qianhai.

Units in Hung Shui Kui currently fetch between HK$12,000 and HK$15,000 per square foot, according to Midland Realty.

A 572 sq ft unit at the 26-year-old Meadowlands development in Hung Shui Kiu is on the market for HK$6.5 million, or HK$11,364 per sq ft, while the asking price for a 471 sq ft flat at the three-year-old Park Villa is HK$7.3 million, or HK$15,499 per sq ft, according to Midland Realty’s website.

In Fanling North, Henderson Land’s yet-to-be named project at 8 Ma Sik Road, close to the proposed On Lok Tsuen station, is awaiting presale approval. The Northern Link extension will connect Kam Sheung Road, Lok Ma Chau border checkpoint and Tuen Mun to the MTR’s Tsuen Wan line.

While the entire development will have 1,576 units, phase one comprises 600 units and is expected to be completed in the first half of 2022.

“Now is the perfect timing to release these new flats for presale,” said Wong.

At present, home prices in Fanling and Sheung Shui were about HK$15,000 per square foot, about 16 per cent lower than the HK$18,000 per square foot in Kowloon, said Dick Yip, a director at Midland Realty’s Sheung Shui branch.

“The lower prices in the Northern New Territories is mainly because of its inaccessibility. Once the transport infrastructure improves, the price gap between the area and Kowloon will narrow,” he said.

Some owners have held back their sale after Carrie Lam said an innovation and technology corridor will serve as the engine of the planned 300 sq km Northern Metropolis, Yip said, adding that he expects to see an increasing interest in the area among prospective investors.

“Most flat viewing appointments were cancelled due to the heavy rain on Saturday and the Typhoon No 8 signal on Sunday. We expect the area to attract more attention and flat seekers to hunt for ‘treasures’ before prices move up,” he said.

Separately, Centaline Property Agency said that it expects the growth pace of home rents in the New Territories to outperform Kowloon over the next five to 10 years.

Upon full development of the entire Northern Metropolis, the total number of jobs would increase substantially from 116,000 at present to about 650,000, including 150,000 jobs related to innovation and technology.

“More people will come to work and create leasing demand,” said Wong Leung Sing, senior associate director of research at Centaline.

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