HONG KONG SAR - Media OutReach - 25 October 2023 -Land Supply Cushman & Wakefield welcomes the government's multi-pronged approach to increasing land supply, demonstrating a strong commitment to addressing the housing needs of the citizens. In addition to the designated areas in the Northern Metropolis, we recommend that the government promptly establish a comprehensive development blueprint and comprehensive infrastructure for the new town development areas. We are pleased to see the government is promoting new projects for the two railway lines and one road, which will contribute to the development of new towns in the eastern part of the Northern Metropolis. These measures will facilitate private developers in accelerating the development of the area, expediting new town development, and further enhancing the surrounding facilities. Housing Supply Cushman & Wakefield acknowledges the government's proposal to enhance the quality and expedite the Modular Integrated Construction (MiC) as the innovative building technologies for public housing. However, the current demand for public housing still far outweighs the supply. We recommend that the government reevaluate the overall public housing policy. For instance, in the rental housing sector, the income and asset limits for eligibility to reside in public housing should be lowered to prevent the misuse of public housing and ensure that resources are allocated to those truly in need. Furthermore, regarding subsidized sale housing, it is suggested that in the future, the sale of Home Ownership Scheme (HOS) flats should only be allowed in the secondary market at prices agreed upon by the owners, exclusively for buyers nominated by the Housing Authority. They should not be sold on the open market through land premium subsidies to maintain an adequate supply of HOS flats for eligible applicants. International Hub for Post-secondary Education The government's proposal in the Policy Address to shape Hong Kong into an International Hub for Post-secondary Education by increasing the quota for non-local students in the eight subsidized universities to 40% is recognized by Cushman & Wakefield as a measure that contributes to the development of new industries and the cultivation of future talent. However, the current number of student dormitories falls far short of meeting the accommodation needs of students. Some tertiary institutions even face a situation where an average of six students compete for one dormitory place. Moreover, some students are unable to afford the high rental costs and struggle to find suitable housing units. Therefore, we recommend that the government review and plan for long-term local dormitory supply. This could be achieved by considering the incorporation of provisions in land leases to support the construction or renovation of private student dormitories. Additionally, reserving land in the northern New Territories for educational use and engaging with educational institutions to improve related facilities would facilitate the future study experience of non-local students in Hong Kong. Data centre The government is determined to transform Hong Kong into an international I&T centre. In line with "Hong Kong Innovation and Technology Development Blueprint", the government is expediting the establishment of a supercomputing centre to foster AI development. From next year onwards, Cyberport will establish an AI supercomputing centre in phases, with a view to supporting the huge demand for computing power from R&D and relevant sectors and promoting industry development. Hong Kong possesses a comprehensive and reliable network infrastructure, a robust demand, and a wide range of cloud service providers. It has always enjoyed a favourable business environment and a low tax rate structure, making it highly conducive for the development of the data centre industry. However, the medium to long-term supply will be constrained by land scarcity, lengthy and complex approval procedures, and limitations in power supply. To promote Hong Kong as a world-class I&T centre hub, Cushman & Wakefield suggests the government to increase suitable land supply in popular areas such as Sha Tin, Tsuen Wan, Kwai Chung, and Faling, in streamlining the approval process for infrastructure and collaborating with power companies to enhance power allocation. These measures will attract more I&T centre operators to establish their presence in Hong Kong and drive its transformation into an international I&T centre. Logistic Land Use