Hong Kong (CNN)Hong Kong plans to build one of the world's largest artificial islands, at a cost of around $80 billion.
However, the Lantau Tomorrow Vision project has come under fire from a number of quarters over environmental concerns and the massive cost to the city's coffers.
Revealing the proposed budget Tuesday -- an amount roughly half the city's current fiscal reserves -- Secretary for Development Michael Wong said the project was necessary due to Hong Kong's "serious shortage of land supply."
To this end, Wong said, around 1,000 hectares of land would be reclaimed near Lantau, the largest island in Hong Kong and home to the city's airport. This could be used to build up to 260,000 residential units, of which 70% would be reserved for public housing.
By comparison, Dubai's Palm Jumeirah island, also created by land reclamation, measures around 560 hectares.
Hong Kong is one of the most densely populated places on earth, and housing prices have long surpassed affordability for most of the city's residents. Large amounts of land held in reserve by property developers, demand for housing by mainland Chinese investors, and relatively low amounts of public housing versus private rental accommodation has exacerbated the issue.
In a statement, Greenpeace Hong Kong criticized the government's Lantau plan for overlooking what it said were cheaper and less environmentally detrimental solutions to land shortage, including the development of brownfield sites, land formerly used for industrial sites.
"Compared with reclamation, (development of) brownfield sites has high public support and the cost is cheaper," said Greenpeace campaigner Andy Chu.
According to the World Wildlife Fund, there is currently 1,200 hectares of brownfield site that could be developed for public housing, greater than the amount of land to be created by the Lantau project.