Hong Kong Homebuyers Left Cold by Prices in Far-Flung Tech Hub

Hong Kong's plan to develop a technology hub near the border with mainland China faces an early challenge as initial residential sales at a far-flung development showed modest results. The ambitious project, called Northern Metropolis, aims to transform a rural area into a residential and high-tech hub for two and a half million people.

The first home launch in the area, Park Silicon, held by Wheelock Properties, saw only 56 out of 100 apartments sell on its debut day, with an average price of over HK$17,000 ($2,750) per square foot. This selling price is nearly on par with more urban locations like West Kowloon. The project spans roughly one-third of Hong Kong's territory and is intended to deepen the city's ties with mainland China while addressing the housing shortage.

However, the relatively high prices in Kwu Tung could deter potential buyers before other launches in the area. Analysts say the lack of full metro connectivity until 2034 may contribute to the pricing pressure. High land costs in 2021, near the peak of Hong Kong's property market, also played a role in the higher-than-expected selling prices.

While local firms have become more skeptical about the multibillion-dollar project, local developers are still offering over 2,100 flats across three developments in Kwu Tung, including upcoming projects from Henderson Land Development and Sun Hung Kai Properties.