The government on Thursday unveiled a plan to build a new town with homes for around 135,000 people in the southernmost part of Tseung Kwan O.

The Development Bureau has identified 80-hectare "Area 137", which is now mainly used to store reclamation materials, as a rare piece of land for development in an urban area.

But the bureau's spokesperson said they would still need to reclaim 20 hectares of land for the project, in order to build 50,000 flats of which 70 percent will be public housing.

It is expected that some 12,600 flats will be ready for people to move into by 2030.

The town will feature a 1.4-kilometre waterfront promenade, as well as a recreational and commercial hub at its centre.

Authorities are looking to connect the new development to Lohas Park MTR Station by constructing a southern extension to the Tseung Kwan O Line.

The spokesperson said they are aiming to start a reclamation project next to Junk Bay Chinese Permanent Cemetery in 2025, in order to relocate the facilities currently in Area 137.

The spokesperson did not give an estimate as to the cost of the whole project, but said it will be a "worthwhile investment".

Legislators will discuss the plan at a panel meeting later this month before authorities consult Sai Kung District Council.