In the latest proposal submitted to the Islands District Council, the Development Bureau said the site could become a unique tourism destination in Hong Kong to attract travellers.
The bureau proposed to build 1,200 residential units at the site, accommodating an estimated population of 3,400.
“The population planning has taken into account the capacity limits of supporting infrastructure, the surrounding environment, living space quality and public expectations, with the aim of creating a high-quality living environment,” it said.
The low-density housing design would also help preserve the unique rural lifestyle of Lamma Island, it added.
Meanwhile, around 150 to 200 yacht berths, as well as water sports facilities, would be offered at the site to boost tourism.
The bureau also proposed to set up restaurants, retail stores and other facilities for the convenience of visitors.
Lawmaker Steven Ho welcomed the proposal, saying it aligns with the promotion of island tourism and the marine economy in Hong Kong.
But he urged authorities to improve the quality of major public piers across the city to enhance transport links to the islands.