A long way to go in greening Hong Kong residential

JLL hopes rising energy costs and awareness of sustainability will drive developers to build greener apartment blocks.

Only 15 private housing estates in Hong Kong have been awarded BEAM Plus Platinum ratings, JLL found, including Swire Properties' luxury Alassio development, pictured above.

The broker’s property management arm claims IoT sensors and AI analytics can save 8-10% on energy costs. JLL also says green residential units can attract higher prices when resold. 

Norry Lee, senior director of projects strategy and consultancy at JLL in Hong Kong, said: "We have not seen a trend to build green residential projects in Hong Kong and it is not a major selling point for developers launching the new projects. 

“However, numerous studies have shown that green residential units have a resale premium of approximately 5-10% compared to conventional ones in many cities. As such, we believe the demand for green housing will rise when the awareness of sustainability increases.”

Hong Kong lenders will offer bonuses for homebuyers purchasing apartments in high sustainability-rated buildings, however the terms are not significantly attractive, with cashback of 0.2% of loan value being typical. 

Cathie Chung, senior director of research at JLL in Hong Kong, said: "There is a clear need for increased awareness of green homes. The government can play a significant role in promoting awareness by educating the general public on the virtues of green homes and implementing measures to improve the attractiveness of green building development, such as providing more GFA concessions and tax incentives to certified projects.”