Sri Lanka Guardian
30 September 2025
Can Hong Kong’s ambitious airport city take off while its lead developer is in survival mode?
A HK$100 billion ($12.8 billion) urban development plan near Hong Kong International Airport is running into turbulence, with its flagship retail complex struggling to attract tenants and developer New World Development (NWD) weighed down by mounting financial pressures.
The project’s centerpiece, 11 Skies, is a massive commercial complex situated just west of the airport. With 350,000 square meters of space and plans for more than 800 tenants, the HK$20 billion development is positioned as one of Hong Kong’s largest malls.
The airport city scheme is a cornerstone of Hong Kong’s government strategy to boost tourism and stimulate the economy by building a new hub around the airport. However, its prospects are increasingly uncertain. A local newspaper reported in June that only about 40% of retail space in 11 Skies has been leased, raising concerns about whether travelers will stop at the complex instead of heading into Hong Kong’s city center, just 30 minutes away by high-speed rail.
Compounding the problem, NWD is grappling with severe debt challenges. The developer revealed earlier this year that it would delay interest payments on its perpetual bonds, sparking fears of potential default. Its debt load reached HK$210 billion, prompting authorities and banks to step in with refinancing support worth HK$88.2 billion.
