Hong Kong’s Northern Metropolis, a government-planned development zone, is emerging as a potential hub for educational institutions seeking to expand their facilities, according to property analysts and market data. The project, part of the city’s first five-year blueprint, aims to enhance university clusters and accommodate growing demand from schools and universities for office and campus space.
Kelvin Lee, director at Midland Commercial, noted that over the medium to long term, the Northern Metropolis could attract institutions looking to grow their teaching, research, and administrative operations. He highlighted that the area’s suitability would likely depend on the availability of appropriate premises, transportation infrastructure, costs, and operational needs. The district’s proximity to technology firms and research organizations makes it appealing for programs requiring substantial space and collaboration.
The government has opened applications for the first new university town in the Northern Metropolis, located in Hung Shui Kiu, with submission deadlines set for the end of this year and announcements expected in early 2027. This initiative expands on the city’s existing three university towns and is a response to rising space demand driven by the education sector.
Data from commercial real estate consultancy CBRE shows that from January 2025 through August 2026, education organizations leased approximately 49,050 square meters of commercial space across retail and office properties and purchased assets valued at HK$845 million. CBRE projects further growth, estimating that by 2035, an additional 200,000 non-local students—both international and mainland Chinese—will necessitate more educational real estate. This could translate into a need for 40 to 50 new international school campuses totaling roughly 1.11 million square meters of gross floor area, and university expansions adding between 1.39 million and 2.14 million square meters of academic space.
The strong interest from the education sector in acquiring and leasing property has provided some offset to the broader office market, where vacancy rates for prime office space stood at 12.5% in August, down slightly from 12.8% in July, according to Jones Lang LaSalle.
However, experts caution that not all university functions will move to the Northern Metropolis. Jack Tong, director of research and consultancy at Savills Hong Kong, explained that research activities and campus-support services may benefit from the new northern cluster’s environment, but postgraduate and executive education programs, which cater to professionals, will likely remain in central urban locations for accessibility. He added that city center offices in areas like Central and Admiralty would continue to serve roles involving regular engagement with businesses, donors, and advisors.
The realization of the Northern Metropolis as an educational hub hinges on the development of adequate transport and connectivity infrastructure. Chris Hui, executive director at Colliers, emphasized the need for long-term infrastructure improvements before such a shift can occur, questioning whether the future transport network will provide the convenience required by institutions and their stakeholders.
As Hong Kong moves forward with its northern development plans, the education sector’s evolving needs appear poised to shape the region’s growth, balancing space requirements with accessibility and operational considerations.