Residential Real Estate News
Demand for Green Residential Properties in Hong Kong to Increase
According to JLL's latest Hong Kong Residential Market Monitor Report released this week, with only 15 private housing estates in Hong Kong having been awarded BEAM Plus Platinum ratings JLL believes that as the understanding deepens, awareness of the environmental, health and financial benefits of green residential will drive more widespread consumer demand.
JLL's Property and Asset Management department has introduced AI and Internet of Things (IoT) analytics in the property management of some housing estates in recent years. Figures from JLL show that energy saving and optimization in the housing estates under our management could be saved up to 8-10% via AI/IoT analytics.
Chung Chi-hung, Head of Property and Asset Management at JLL in Hong Kong and Macau said, "One of the most direct benefits of green buildings is their capacity for energy savings over the project life cycle. This can be achieved in various ways, such as incorporating energy-efficient design features and utilizing renewable energy sources. Green buildings can leverage natural ventilation to reduce the need for air conditioning or employ passive solar design principles to optimize daylight use and minimize heat gain. Also, energy efficiency of green buildings could be enhanced by technologies which analyze and optimize energy usage. A number of property management firms also introduced environmental measures such as using LED light, IoT censors and AI analytics to achieve the sustainability goals."
Data from HKGBC shows that as of May 2023, only 15 private residential projects in Hong Kong were awarded BEAM Plus Platinum ratings. Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL in Hong Kong also commented, "We did not see the trend to build green residential projects in Hong Kong and it is not a major selling point for the developers in 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."
Cathie Chung, Senior Director of Research at JLL in Hong Kong said, "There is a clear need for increased awareness of green homes. Currently, only half of the banks in Hong Kong offer "green mortgage" plans on residential properties with BEAM Plus Platinum or Gold ratings, and the attractiveness of the actual incentives in these plans is lacking, with typical cash rebates of only up to 0.2% of the loan. 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. By promoting green buildings, Hong Kong can work towards a more sustainable future and improve the overall living quality."
