Hong Kong’s‌ Northern Metropolis:⁣ A Tech Hub Dream on China’s Border

updated ‌June 13, 2025
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Farmer Wong Chin Ming surveys his crops of zucchini, watermelons and tomatoes in‌ his Hong Kong greenhouse.‌ For nearly two decades, he has cultivated this land, once ‍the site of a factory. But his farm is slated for demolition to make way for Northern Metropolis, China’s ambitious plan to ⁣create a Silicon Valley in Hong Kong. The government ⁢has designated 116 square‍ miles for the project, more⁢ than twice the size of San ⁤Francisco.

Despite its name, Northern Metropolis is ‌currently⁤ a mix of quiet villages, apartment buildings and vacant lots.Warehouses with rusty fences, abandoned‍ vehicles and empty quarantine cabins dot the landscape. Unlike Silicon Valley’s organic growth or Hong kong’s conventional autonomy, ‍Northern Metropolis is​ a top-down initiative launched after Beijing’s crackdown in 2020.

Real estate developers ‌harbor private doubts about investing in the project, fearing financial risks amid Hong Kong’s slumping property market. Conservationists are concerned about the environmental consequences, and some residents are unwilling to leave their homes.However, with limited avenues for dissent, many Hong ⁣Kong citizens​ are accepting the unavoidable changes. The government estimates‌ that Northern Metropolis will displace 4,500 households. “If they have to develop this place, we can’t stop ​it from happening,” Wong said.

Former‍ Hong Kong leader Carrie Lam introduced Northern Metropolis in⁢ 2021⁤ to address ‍the city’s housing affordability crisis, a source of frustration for Beijing. The‍ Hong Kong government‍ has as dedicated meaningful resources‌ to​ planning the area, which comprises one-third of the city’s territory.

The⁤ development will be situated along the Shenzhen River, which marks the border between Hong Kong and mainland ⁢China. The blueprint divides the⁤ area into four zones: technology, logistics, border trade and ecotourism. New subway stations, including a cross-border rail link to ⁤Shenzhen, ⁢are planned.The project aims ⁣to attract cutting-edge tech companies and research facilities, and more than double the area’s population. “As an investment‌ crucial to the social and economic development of Hong Kong, the Northern Metropolis⁣ has topped the Government’s agenda,” ⁣the Hong kong management said in a statement.

The project’s urgency stems from the weakening of Hong Kong’s traditional economic pillars: finance and real estate. These sectors are facing headwinds as ‍tensions rise between China and the west,whose interests Hong Kong has historically​ balanced. “We need⁤ to diversify in ⁤terms of our economic engines,” said​ Kathy lee, head of research at Colliers⁢ International Group Inc.

Northern‍ Metropolis ⁢could further align Hong Kong with mainland china and President Xi Jinping’s economic objectives. the development will ⁣facilitate ‌the city’s integration into the Greater Bay Area, a region encompassing 11 southern Chinese cities, Lee said. It could also serve as a platform for ⁢exporting Chinese ⁣technologies by ⁣registering them in Hong ⁣Kong, according to Carlos ​lo, a professor at the Chinese University of Hong Kong. “Hong kong ⁢has to find a new model to revive the ⁢economy,” he said. “The ⁣government can’t go back to how things where run in the good old days.”

Hong Kong authorities expect ‍the city’s wealthy families to invest⁣ in Northern Metropolis. In Hong Kong, the government owns ⁢land, and companies purchase development rights for⁢ a fixed period, typically 50 years. The project’s total cost remains uncertain, with government estimates in the tens of​ billions ‌of dollars, while other estimates are significantly higher.

At a meeting in shenzhen, Xia Baolong, ⁣the top Chinese official overseeing Hong Kong, urged tycoons and executives to support the city’s growth and participate in projects like ⁣Northern ⁣Metropolis. Steve Tsang, director of a china research center at SOAS University of London, described beijing’s attitude: “If the business elites of Hong Kong ⁢do not make contributions to the​ economy as Beijing deems appropriate, there is no reason why they need to be well treated.”

The costly initiative “comes at an inappropriate timing when everyone needs​ cash,” said Hannah Jeong, head of valuation and advisory services at CBRE Group Inc. Home values in the city are near a nine-year low, and office rents have⁤ fallen 40% since their 2019 peak.

Another deterrent for developers is the government’s plan to shift more infrastructure costs to private ⁣companies. Developers would be responsible for electricity, water pipes and other infrastructure, which the government previously ‍provided. Property companies have‍ expressed concerns⁣ about ⁤this change,​ according to sources familiar with the discussions. Building infrastructure could lengthen project ​timelines, making it tough for developers to assess land‌ prices and risks, said ‌Patrick ​Wong, a senior‍ analyst with Bloomberg Intelligence. “It’s a big problem,” Wong said.

If local developers are hesitant to invest, Chinese state-owned companies,⁣ with‍ greater access to capital, ⁢could play a significant role in Northern Metropolis, Jeong said. The government says it is indeed considering developers’ feedback and may offer more flexible payment arrangements. “We believe that the packages to be tendered would be of good commercial interest to the market,” it said in a statement. About two dozen companies,including⁣ hong Kong and mainland Chinese developers,contractors,conglomerates ⁤and an e-commerce logistics company,have expressed interest in bidding.

Brian ⁣Wong of Liber Research Community, a think tank ⁢in Hong Kong, raised concerns about‌ the environmental impact of Northern metropolis. The area “has a lot of distinct natural and human landscapes, and it would be a waste if those landscapes are destroyed for a development that doesn’t come to full fruition,” he said. The‌ government says it ‌is indeed trying to preserve​ farmland ⁢and convert fallow fields into​ wetland habitats, while also promoting sustainable urban farming.

Villages in the Ta Kwu Ling district are among the ‌first to be affected by Northern Metropolis. The government aims to attract universities to the area, with construction of new apartments for teachers and students scheduled to begin in 2028. Residents of Sing Ping,⁣ a rural village near the Chinese border, are⁢ worried.emerald Lee, who ⁢has lived in her family’s ⁤home since the 1960s, fears the compensation offered by⁣ the government will be insufficient. Residents can receive ⁢HK$12,816 ($1,633) per square meter, one-tenth of⁣ the area’s average asking price. while low-income residents may qualify for subsidized housing, Lee would prefer the government to relocate the village nearby. “We have‍ lived here for six, seven decades,” she said. “Why do they have to force us out and⁤ replace us with a bunch of very different things?”

What’s⁢ next

The success of‌ Northern Metropolis hinges on overcoming financial hurdles, addressing environmental concerns​ and ensuring fair compensation for displaced residents. As bidding begins, the project’s future and its impact on Hong Kong’s economy and society remain to be seen.