ULI Hong Kong Government Committee, October 2025

The Hong Kong Chief Policy Address 2025, released 17^th September 2025, covers a wide range of initiatives, from governance systems, economic development to social welfare, with the top priority being economic development. The comprehensive Policy Address highlighted several key areas: development of the Northern Metropolis; attracting top-notch companies across various industries; and major reforms in planning and land administration.

The Policy Address identifies the Northern Metropolis as the key new growth engine for Hong Kong’s economy. It announces a series of reforms to accelerate its implementation, including offering preferential and incentive packages to the right investors and operators in selected sectors, in the form of land grants and relaxation in the terms of premium payment. There will be dedicated legislations, enabling governance structure such as a high-level steering committee headed by the CE, public corporations responsible for industrial park development, utilizing public private partnership and build operate transfer models. In specific cases, the conventional land tender method of” highest bidder wins” will be replaced by a two-envelope method that takes into account non-monetary considerations. In some cases, land premium payment would be on a “pay as you build” basis, payable on the completed gross floor area, rather than the current upfront payment based on the full development value of the project. In other cases the land use restriction in the outline zoning plan will be relaxed.  It promises a fast-track statutory approval processing system that accelerates the planning and building control process, liberalization of building material and construction standards to accept standards from other jurisdictions including from mainland China, to lower the construction cost and shorten the construction period.

A focus of development in the Northern Metropolis is the University Town. Several batches of the University Town will be available for development in 2026, 2028 and 2030. The policy address announces special measures in a” hostel in the city “scheme, facilitating the redevelopment of commercial sites into student hostels without losing its original allowable plot ratio.

The Policy Address mentions attracting top-notch companies in several industries including pharmaceutical, data science and artificial intelligence as top priorities. And there will be preferential measures to incentivize their investment/establishment in Hong Kong.

The Policy Address also outlines significant reform in the planning and land administration system. If fully implemented, combined with the adoption of industrial policy in certain sectors, this would prove to be nothing short of a major shift in the governance and development model of the city.

What the 2025 Policy Address Means for ULI Hong Kong

Direct Relevance to ULI’s Mission

• ULI’s core mission is to shape the future of the built environment for transformative impact in communities worldwide. The Policy Address’s focus on economic development, land supply reform, and innovative planning aligns directly with ULI’s priorities: sustainable urban growth, best practices in land use, and thought leadership in real estate.

Opportunities for Thought Leadership & Advocacy

• The shift to new land tendering models (e.g., two-envelope system, “pay as you build”), fast-track approvals, and relaxed zoning creates a unique opportunity for ULI to convene stakeholders, share global best practices, and advise on implementation.
• ULI can play a key role in facilitating dialogue between government, private sector, and academia-especially as the Northern Metropolis and University Town projects move forward.

Platform for Knowledge Sharing

• The liberalization of building standards and acceptance of international norms opens the door for ULI to showcase case studies, research, and expertise from other jurisdictions.
• ULI’s global network can help Hong Kong benchmark its reforms and learn from cities that have undergone similar transformations.

Engagement in Policy Development

• With the government’s commitment to industrial policy and public-private partnerships, ULI can advocate for sustainable, inclusive, and resilient development models.
• ULI’s members—developers, investors, planners, and academics—can contribute insights on how to balance economic growth with environmental and social objectives.

Shaping the Future Talent Pipeline

• The University Town and “hostel in the city” initiatives will require innovative approaches to student housing and campus planning. ULI can support these efforts by sharing global trends and convening experts in education-focused development.

In summary:
The 2025 Policy Address is a call to action for ULI Hong Kong to lead, convene, and inform the next chapter of the city’s urban development. It’s a chance to shape policy, foster collaboration, and ensure that Hong Kong’s growth is sustainable, innovative, and globally competitive.

If you would like to know more, ULI is well positioned to discuss all areas of the Policy Address in more detail. Please feel free to reach out to us on email [email protected].