Self-funded campuses favoured in Hong Kong’s new university towns

Hong Kong's Education Minister has indicated that tertiary institutions planning campuses in the city's upcoming university towns will receive preferential treatment if they do not require government loans for construction. The initiative forms part of the Northern Metropolis megaproject, which will encompass three new university towns: Hung Shui Kiu, San Tin, and Ta Kwu Ling. Applications for the first town, Hung Shui Kiu, are open until the end of this year, with results expected in early 2027.

The government has provided indicative terms for loan proposals, with institutions that do not require loans or present financially competitive alternatives being given priority. The repayment terms, if a loan is taken out, include a six-year interest-free period, followed by interest rates of approximately 2% from the seventh to the tenth year, and around 5% from the eleventh to the twentieth year. Alternatively, institutions can extend the repayment period to 25 years at an interest rate of around 5%.

Chief Secretary Eric Chan Kwok-ki emphasized that the loan requirement is only one factor in the vetting process. The Northern Metropolis University Town, spanning 30,000 hectares, is located near the border with Shenzhen and serves as a platform for Hong Kong's involvement in the Greater Bay Area and national development. The town will also promote collaboration with local and international institutions, as well as strengthen ties with leading enterprises and develop shared facilities.