This file photo dated June 23, 2022 shows an aerial view of residential buildings in the Tin Shui Wai district in the New Territories. (PHOTO / AFP)

HONG KONG - New World Development and China Resources Land said they will jointly build a major housing project in the city's Northern Metropolis next year.

In a joint statement on Wednesday, the two developers said the project will create around 1,800 homes in the Hong Kong Special Administrative Region government-led property development in the northern New Territories.

The project has an estimated market valuation of HK$10 billion ($1.28 billion), a source close to the companies told Reuters.

According to the statement, the developers agreed on a framework for the co-development of two sites in Yuen Long South in the designated "high-end professional services and logistics hub" zone of the Northern Metropolis

“New World Development owns approximately 15 million square feet of agricultural land within the Northern Metropolis. We are delighted to partner with CR Land to develop Hong Kong’s first project in the Northern Metropolis,” Adrian Cheng Chi-kong, the CEO of New World Development, was quoted as saying in the statement.

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Li Xin, Chairman of the Board of China Resources Land Limited, said: “China Resources embraces the mission of promoting Hong Kong's long-term prosperity and stability..We are committed to contributing to Hong Kong’s economic development and improvement of people's livelihoods, as well as to supporting the country’s overall development.”

According to the statement, the developers agreed on a framework for the co-development of two sites in Yuen Long South in the designated "high-end professional services and logistics hub" zone of the Northern Metropolis.

The site area will cover nearly 150,000 square feet with a total buildable gross floor area of about 720,000 square feet.

The project enjoys full connectivity with the territory’s railway system and other transportation networks. It is roughly six minutes by car to the Long Ping MTR Station, and around 30 minutes of commute to Hong Kong Island, Kowloon and Shenzhen.

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The HKSAR government first unveiled plans for the Northern Metropolis in 2021, aiming to provide homes for around 2.5 million people in a bid to ease a chronic housing shortage, and create a new business district.

China Resources Land signed agreements last year with four Hong Kong peers, including New World, Henderson Land, K Wah International and Shun Tak Holdings to study cooperation on projects in the Greater Bay Area.

With Reuters inputs