RICS Response to the Hong Kong Policy Address 2025

Hong Kong’s 2025 Policy Address comes at a pivotal moment for the city’s built environment. Elevated interest rates have rebounded from near-zero levels, creating challenges for development projects to achieve viable returns. Coupled with global trade volatility and financial uncertainty, these conditions underscore the need for Hong Kong to adapt and seize opportunities for innovation and sustainability. RICS offers insights into three strategic Government initiatives: Accelerating Development of the Northern Metropolis, Promoting Integrated Development of Education, Technology and Talents, and Facilitating Stable Living in a Caring and Inclusive Society.

Accelerating Development of the Northern Metropolis

The Northern Metropolis is central to Hong Kong’s long-term growth strategy. RICS recommends establishing a Long-Term Development Financing Scheme (LTDFS) led by the Hong Kong Monetary Authority to provide preferential loans tied to GDP growth or project performance. We also urge the Government to broaden PPP models beyond traditional BOT arrangements, adopting joint ventures and availability-based frameworks to align risk-sharing and long-term value creation. A PPP and Finance Advisory Panel, supported by a dedicated center of excellence, should consolidate best practices and strengthen investor confidence. Transparent land application roadmaps, phased land premium payments, and expedited transport infrastructure will be essential to attract diverse investors and accelerate development.

Promoting Integrated Development of Education, Technology and Talents

Hong Kong’s ambition to become an international education hub requires a holistic approach. Expanding student hostel supply and incentivizing private investment through tax concessions or yield support can address long-standing accommodation shortages. Beyond attracting students, Hong Kong should invite foreign universities to establish branch campuses, following successful Sino-foreign models. At the same time, rebranding the surveying and construction professions and including high-demand roles—such as AI/BIM specialists and sustainable building certifiers—in talent schemes will strengthen the sector’s appeal. Upskilling the existing workforce through subsidized training in digital and green technologies is critical to improving productivity and safety.

Facilitating Stable Living in a Caring and Inclusive Society

Creating a caring and inclusive society hinges on housing stability and cost efficiency. RICS supports the Government’s commitment to increasing public housing supply and maintaining private housing targets, while emphasizing quality and safety in rapid construction. Streamlining approvals through centralized digital platforms and inter-agency coordination will reduce delays and costs, complemented by centralized procurement for MIC modules and steel reinforcement to ensure quality control. Urban renewal policies, zoning flexibility for underutilized industrial land, and rationalized GFA exemptions for parking will enhance land efficiency and project economics.

RICS Hong Kong Advisory Board Chair & APAC World Regional Advisory Board Member - Ada Fung said: “As Hong Kong navigates a pivotal economic moment, RICS advocates for collective action to advance the Northern Metropolis, nurture talent, and drive sustainable development—transforming challenges into opportunities for a resilient, inclusive, and future-ready built environment.”

RICS Hong Kong Member Engagement Group Chair – Alan Choi said "We welcome initiatives on delivering housing stability and urban renewal. The new measures have shown the innovation and commitment from the Development Bureau, and they will provide key incentives to help drive market forces to participate in the redevelopment of urban areas."

Hong Kong stands at a crossroads defined by bold vision and shared responsibility. RICS calls for collaborative action between government, industry, and professional bodies to accelerate development, foster talent, and deliver inclusive growth. Through innovative financing, integrated planning, and unwavering commitment to sustainability, we can build a resilient, future-ready city that remains a global benchmark for excellence.

Download the full response document

Acknowledgements

• Ada Fung FRICS, RICS Hong Kong Regional Advisory Board Chair & APAC World Regional Board Member
• Hannah Jeong FRICS, RICS Hong Kong Regional Advisory Board Member
• Justin Yu MRICS, RICS Hong Kong Regional Advisory Board Member
• Ling Lam FRICS, RICS Hong Kong Regional Advisory Board Member
• Patrick Wong FRICS, RICS Hong Kong Regional Advisory Board Member
• Steve Lewis MRICS, RICS Hong Kong Regional Advisory Board Member
• Alan Choi MRICS, RICS Hong Kong Member Engagement Group Chair
• Leo Yuen MRICS, RICS Hong Kong Member Engagement Group Vice-chair
• Anthony Wong MRICS, RICS Hong Kong Member Engagement Group Member
• Hiuming Chan MRICS, RICS Hong Kong Member Engagement Group Member
• Trevor Sham MRICS, RICS Hong Kong Member Engagement Group Member