CBRE: Response to Government Announcements on Hung Shui Kiu Industry Park Company Establishment and Modern Logistics Cluster Study Results

CBRE has released its response to two major policy announcements shaping the future of industrial and logistics development in the Northern Metropolis: the establishment of the Hung Shui Kiu Industry Park Company Limited by the Development Bureau, and the publication of the Hung Shui Kiu / Ha Tsuen New Development Area (HSK/HT NDA) Modern Logistics Cluster Study Report by the Transport and Logistics Bureau.

These announcements follow the 2025 Policy Address and represent the most substantive policy developments to date for HSK/HT, an area positioned as a strategic hub for logistics and industrial growth within the Northern Metropolis.

CBRE welcomes the Government’s clearer articulation of long term direction for the sector, following several recalibrated attempts in 2025 to attract industrial and logistics investment through different land delivery and development models.

The Establishment of the Hung Shui Kiu Industry Park Company, will Create a More Investor Friendly Vehicle Which is Positive; the Next Step is to Avoid Overlap with Other Park Managers and Offer a Single, Coherent Front Door for Investors.

Hannah Jeong, Executive Director, Head of Valuation & Advisory Services, CBRE Hong Kong, said: “The establishment of the Park Company is a meaningful signal that the Government is moving towards a more execution oriented and investor facing delivery model. Greater clarity on intent, structure and timing is a positive step for market confidence, particularly after the challenges encountered with earlier MSB tenders.”

However, CBRE cautions that effective implementation will depend on clear institutional positioning and market aligned commercial frameworks. The role of the Park Company overlaps in several areas with existing platforms such as the Hong Kong Science and Technology Parks Corporation (HKSTP), creating a risk of duplication unless mandates and interfaces are carefully delineated.

From a private sector perspective, CBRE notes that the proposed public private partnership and BOT style models—likely to be sub lease based—may face bankability challenges without clear exit, tenure and return mechanisms.

Jeong added: “Flexibility in development models is welcome, but without clarity on tenure, exit arrangements and returns, the pool of investors willing to commit long term capital may remain limited for the leasehold land. Getting the commercial mechanics right will be just as important as policy intent.”

“HSK/HT NDA Modern Logistics Cluster Study Report”  published by Transport and Logistics Bureau, Needs to Balance Long‑Term Ambition with Near‑Term Market Reality

CBRE also reviewed the HSK/HT Modern Logistics Cluster Study, which outlines the development of a 36 hectare pilot modern logistics cluster to support Hong Kong’s long term positioning as a regional logistics and supply chain hub.
The report’s strategic vision, focus on smart and green logistics, and consultative approach are welcomed. At the same time, CBRE highlights supply scale, demand absorption and tender design as the key execution risks.

Eddie Tsui, Senior Director, Valuation & Advisory Services, CBRE Hong Kong, commented: “The Study sets out a clear long term vision, but delivery will hinge on whether land supply, development intensity and tender conditions are calibrated to actual market absorption. Vision alone will not secure occupancy or investment.”

CBRE notes that planned logistics supply in the Northern Metropolis is equivalent to around 1.5 times Hong Kong’s existing logistics stock, underscoring the importance of phased, demand led land release. The firm also highlights that near term occupier demand remains strongest for efficient, lower rise logistics formats, while highly automated or net zero facilities currently face more limited take up due to higher costs.

Tsui added: “A transitional, market responsive approach, such as allowing flexibility on initial plot ratios through a ‘pay what you build’ model, could reduce early stage risk while preserving long term development optionality for the Government.”

CBRE further emphasised that the coexistence of the Industry Park and the Modern Logistics Cluster within the same development node reinforces the need for coordinated policy messaging, clearly differentiated positioning, and streamlined investor engagement mechanisms to avoid confusion and internal competition.

In conclusion, CBRE believes that the Government’s recent announcements provide a strong strategic foundation for industrial and logistics development in HSK/HT NDA. However, success will depend on market led execution, flexible phasing, and commercially viable structures that align public sector objectives with private sector decision making.


Land Resumption: Navigating Complexity as Northern Metropolis Advances

According to Government notices issued in 2025, over 300 hectares of land across the New Territories have already been resumed, affecting more than 7,500 private lots, with a concentration in San Tin, Ngau Tam Mei and Yuen Long South, which are the core components of the Northern Metropolis programme. 

Government land resumption activities are intensifying as the Northern Metropolis moves into the implementation phase. Given the scale of resumed areas and volume of affected parties, administrative timelines and claim processes are becoming more complex. Affected stakeholders, including landowners, tenants, and business operators, are encouraged to closely monitor notices, understand claim procedures and seek professional support early.

Shana L. Lam, Executive Director, Valuation & Advisory Services, CBRE Hong Kong, says: “We are seeing land resumption on an unprecedented scale in the Northern Metropolis, and many stakeholders underestimate the procedural complexity and claim requirements. Early preparation is critical, particularly for businesses that may need to substantiate relocation costs and business loss. With proper guidance and timely action, affected parties can safeguard their entitlements and plan operational continuity more effectively.”


As the Northern Metropolis moves into a decisive implementation phase, coordinated initiatives such as the Hung Shui Kiu Industry Park Company, the HSK/HT Modern Logistics Cluster and the ongoing land resumption programme signal a fundamental transformation in Hong Kong’s industrial and logistics landscape. Together, these efforts lay the foundation for a more integrated, future ready economic corridor that strengthens Hong Kong’s role within the Greater Bay Area. CBRE remains committed to providing data driven insights, valuation expertise and strategic advisory to help government, businesses and land stakeholders navigate the ongoing development of the Northern Metropolis.