Hong Kong’s rail company MTR bets $6.3 billion on a city that doesn’t exist yet
The project is scheduled for completion in 2034 and will be financed upfront by the company.
Hong Kong's MTR railway company is investing heavily in the Northern Metropolis, a vast, unnamed city that doesn't yet exist. The Northern Metropolis project, valued at $6.3 billion, is financed by MTR and backed by the government. The project will span 300 square kilometers and will see the construction of 17 kilometers of underground rail track, along with seven new stations.
MTR is also developing a tech hub in the area, aiming to transform it into Silicon Valley. The government has granted MTR development rights for 10 plots of land along the upcoming lines, effectively reducing the company's initial investment. The Northern Metropolis is part of Hong Kong's strategy to integrate with mainland China, address housing shortages, and foster advanced technology industries.
Despite MTR's history of profitable rail construction through the "rail-plus-property" model, this new venture presents unique challenges. The project's success hinges on timely completion and budget adherence, given the uncertain outlook for the property market.
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