Northern Hong Kong will be transformed into a metropolis to house 2.5 million people and to offer 650,000 jobs, with an emphasis on innovation and technology and integration with Shenzhen.

The "Northern Metropolis" will be an important part of "twin cities, three circles" concept, which will facilitate close collaboration between the governments of Hong Kong and Shenzhen, Carrie Lam said.

The metropolis would include the Yuen Long and North District, covering 300 square kilometers from west to east along Hong Kong's border with Shenzhen.

It will be developed as an international IT hub, and the home to some 2.5 million people and offer 650,000 jobs, including 150,000 in the IT sector.

It covers the mature new towns in Tin Shui Wai, Yuen Long and Fanling, Sheung Shui and their neighbouring rural areas, as well as six new development areas in different planning stages, namely Kwu Tung North/Fanling North, Hung Shui Kiu/Ha Tsuen, Yuen Long South, San Tin/Lok Ma Chau, Man Kam To and the New Territories North New Town.

"It is the most vibrant area where urban development and major population growth of Hong Kong in the next 20 years will take place.

The Northern Metropolis Development Strategy proposes to make optimal use of the land vacated upon relocation of the Lok Ma Chau Control Point to the new Huanggang Boundary Control Point in Shenzhen, along with some rural land and adjacent fish ponds. This, together with the original land-use plans for the San Tin/Lok Ma Chau Development Node, would provide about 150 hectares of additional land for developing the San Tin Technopole.

Land supply would also be critical to ensuring that the Northern Metropolis offers a "home-job balance" in the area.

A number of development projects, planned or under planning, in the Northern Metropolis are expected to provide about 350,000 residential units. An additional 600 hectares of land could be developed for residential and industry use, offering up to 186,000 residential units.

The metropolis will be backed by five new railway projects.

It will be a part of the "twin cities, three circles" concept.

The "Twin Cities" refers to Hong Kong and Shenzhen, whereas the "Three Circles" includes, from the west to the east, the Shenzhen Bay Quality Development Circle, the Hong Kong-Shenzhen Close Interaction Circle and the Mirs Bay/Yan Chau Tong Eco-recreation/tourism Circle.

The concept will facilitate close collaboration between the governments of Hong Kong and Shenzhen in areas such as economic development, infrastructure, I&T, people's livelihood and ecological environment.

"By joining hands, we will be able to achieve the synergy effect of 'one plus one is greater than two'," Lam said.

Sun Hung Kai Properties welcomed the Northern Metropolis plan, saying it lays an important direction for future development of Hong Kong.

Simplifying land development procedures can also help address housing issues, which the developer finds encouraging.