Hong Kong minister: No subsidies needed for Pak Shek Kok MTR station via rail-plus-property model

Hong Kong’s Secretary for Development Bernadette Linn Hon-ho announced on Saturday that the Pak Shek Kok MTR station on the East Rail line will be built without any government subsidies, thanks to the “rail-plus-property” model. Under this model, the MTR Corporation will receive development rights at two sites—one in Pak Shek Kok and another in Ma On Shan—to fully cover construction costs. Linn stated that the land grants are structured to reflect the project’s full costs and allow the rail operator to generate sufficient returns, ensuring that changes at any stage should not require government funding. The government plans to begin construction in 2028, with a target completion date as early as 2033. The station will be located between Tai Po Market and University stations, addressing long-standing demand from residents and commuters.

Linn emphasized that while the government awaits the MTR Corp’s detailed design and cost estimates, the rail-plus-property model has been successfully used in previous projects and will ensure financial viability. This approach leverages land value appreciation around new transit hubs to fund infrastructure, a common practice in Hong Kong. The announcement follows the government’s unveiling of plans earlier this week, signaling a commitment to improving connectivity in the New Territories. With no taxpayer money required, the project is expected to proceed smoothly once design and cost details are finalized, benefiting thousands of daily commuters and boosting property development in the area.