In recent years, the HKSAR Government has increased the supply of land and housing units while promoting infrastructure through studies for the Northern Metropolis development, Lantau Tomorrow and a number of transport and other projects. It is estimated that the Hong Kong construction industry’s construction output will increase year-on-year to HK$300 billion and will develop towards building a liveable city.
The Construction Industry Council (CIC) invited the Honourable Regina IP, Executive Council Convenor and Legislative Council Member, to be the keynote speaker earlier at a CIC-See What I See event. IP shared her opinions on the theme of ‘Hong Kong’s Mega Future’ and the implementation of future large-scale infrastructure projects in Hong Kong.
Land is fundamental for community development and for building a liveable city. Therefore, society expects government to increase the land supply to meet economic and housing development needs.
As IP pointed out, the latest SAR government and the Legislative Council have already stepped up the pace in this regard; in the past year, over HK$100 billion of funding has been allocated for public work projects. In the future, the government will focus on funding infrastructure projects that promote development in Hong Kong.
Overcoming Policy Challenges to Speed up Infrastructure Development
In the past, Hong Kong has encountered many policy issues in the implementation of construction projects, which has to a certain extent slowed the city’s development. IP explained that the government recently moved to streamline the development process by drafted and submitting the Development (Town Planning, Lands and Works) (Miscellaneous Amendments) Bill 2022 to the Legislative Council.
At end of 2022, the Development Bureau proposed amendments to six town planning and land related ordinances. In response to social demand for land and housing, regulations for the six areas were revised in a comprehensive draft approach, deliberately simplifying the current land creation process and compressing development timelines. Such an approach should increase the speed and efficiency of creating land and building housing units.
IP further explained: “If the Bill is passed, it will play a positive role in accelerating land supply. When the suggestions are implemented, it can reduce the time required to turn a plot of ‘primitive land’ into ‘spade-ready site’ from six years to four years for general projects. As for the planning of large-scale projects such as New Development Areas – previously called ‘New Towns’ – timelines will be drastically reduced from about 13 years to seven years, significantly enhancing project development efficiency.”
IP added that the government has proposed to shorten the Town Planning Board’s planning process from three rounds of consultation to one, and the statutory timeline for submission and approval of draft plans from ‘2+9’ to ‘2+5’ months.
Currently, reclamation projects in Victoria Harbour are subject to the Protection of the Harbour Ordinance. The government has suggested to the Legislative Council that small harbour improvements which do not exceed 0.8 hectares or non-permanent reclamation works such as landing steps and pier improvements could be exempted by director-level government officials without needing legislative procedure.
In another proposal, reclamation plans could be gazetted and objections handled before completing an Outline Zoning Plan, allowing plans to advance by at least nine months.
IP further believes that the ordinance amendments could offer more protection to those affected by town planning and land resumption.
Northern Metropolis – A New Engine to Drive Hong Kong Ahead
IP also focused on future planning for the Northern Metropolis. Set to be the basis of Hong Kong’s future strategic development, the Metropolis includes 300 square miles of land in Yuen Long and Northern District. It is estimated, when developed, the Northern Metropolis could accommodate about 2.5 million residents, providing about 930,000 housing units and 650,000 work positions.
To improve the Northern Metropolis’s connections with other districts – and especially the Central business district – the government is implementing public consultation on the construction of three strategic railways and three main roads: a Hong Kong-Shenzhen Western Rail Link (connecting Hung Shui Kiu and Qianhai), a Central Rail Link, a Tseng Kwan O Line Southern Extension, the Northern Metropolis Highway, Shatin Bypass and a Tseng Kwan O-Yau Tong Tunnel. Among these, the Hong Kong-Shenzhen Western Rail Link will fully utilise the frontier advantages of the Northern Metropolis and help promote the integration of Hong Kong with the Greater Bay Area.
One development priority of the Northern Metropolis is to build the Sun Tin Technopole at the Lok Ma Chau Loop, which is expected to become an innovation and technology hub in Hong Kong and create more than 100,000 jobs.
The Sun Tin Technopole is comprised of an innovation and technology park and Sun Tin city centre, where about 50,000 housing units will be built to accommodate a population of 150,000. It is expected to be occupied in 2031 the earliest. The area of the innovation and technology park is equivalent to 17 Hong Kong Science Parks.
IP believes that development of the Northern Metropolis is of great strategic importance. Traditionally, Hong Kong has faced development difficulties due to land boundaries. The Northern Metropolis breaks that predicament, which will help Hong Kong integrate with the Greater Bay Area. Hong Kong people may even work or retire within the Greater Bay Area to improve their quality of life. IP expressed hope that the public and private sectors will work together to develop the Northern Metropolis, tap the potential of Hong Kong’s land and accelerate the pace of development.
Strengthening Bay Area Collaboration to Ensure Future Development
With an increase in infrastructure projects on the horizon, the construction industry requires an increase in manpower. According to the Manpower Forecast for Hong Kong Construction Industry released by the CIC in early 2023, there will be greater demand for construction labour. It is estimated that by 2027, there will be more than 50,000 vacancies in Hong Kong’s construction industry, of which 40,000 will be for skilled workers.
The shortfall in manpower has directly affected infrastructure projects and threatens to hinder Hong Kong’s economic recovery, development and livelihoods. Therefore, the government recently announced a maximum quota of 20,000 foreign workers to ease the labour shortage in both the construction and transportation industries.
Ir Thomas Ho, Chairman of the CIC, remarked that “… the industry is now in urgent need of hands. We cannot let the labour shortage pull us away from our mega future. For the sake of construction development and the hope of bringing liveability to our people, the CIC will continue its serious efforts to explore closer collaboration between regions.”
Looking forward, the CIC will work closely with the industry to support the government’s policies, create a better living environment and promote sustainable economic and social development in Hong Kong by enhancing construction productivity.
