Building owners face tougher energy audit rules, JLL says

The city expanded its energy audit rules to 11 building types.

Hong Kong building owners face greater pressure to improve energy efficiency as new rules expand energy audits and require technical data to be disclosed, making building performance more visible to tenants and investors, JLL said.

The Buildings Energy Efficiency (Amendment) Ordinance 2025 will take full effect on 20 September, expanding regulated buildings to 11 categories from two and shortening the energy audit cycle to five years from 10.

The revised rules will also require technical data in energy audit reports to be disclosed.

The changes cover commercial buildings and data centres, as well as schools, government buildings, community buildings, municipal services buildings, buildings for medical and health care services, airport passenger terminals, and railway stations.

The disclosure requirement could make energy performance a factor in leasing and acquisition decisions as tenants and investors gain greater visibility into the condition and efficiency of buildings.

Ryan Wong, Head of Project & Development Services (PDS) at JLL in Hong Kong, said the amendment will increase the visibility of properties' environmental performance amongst the public and prospective tenants.

“Recently, we have received enquiries from a number of building owners in core districts such as Central and Lan Kwai Fong, who are concerned that ageing building facilities may weaken their properties' competitiveness once mandatory data disclosure takes effect,” Wong said.

He said disclosed data could reveal ageing internal facilities and poor energy efficiency even when a commercial building appears well maintained externally.

“Tenants and investors will factor in potential equipment failure risks and higher electricity costs, and compare these directly with other commercial buildings,” Wong said.

JLL said owners and asset managers will need to conduct energy audits in line with statutory requirements, establish energy data management systems to support periodic reviews, and plan equipment upgrades and capital investment.

The firm has brought together 10 sustainability consultants and engineering specialists within its PDS team to provide services covering energy audits, regulatory compliance, sustainability planning, and energy-efficiency optimisation.

JLL said its team will assess solutions based on factors including property holding periods, payback periods, and capital returns.

Its services include energy audits, ESG roadmaps, climate risk assessments, net-zero planning, retro-commissioning, and technical support for green building certification programmes.

The firm also said targeted green building investment can generate green rental premiums of up to 10%, reduce utility costs by up to 50%, and support an overall asset value uplift of 15% over the long term.

Wong said the amended rules mark a milestone in Hong Kong's efforts to improve energy efficiency and reduce carbon emissions in buildings.

“For building owners and asset managers, the new requirements are not only a matter of regulatory compliance, but also reflect the growing market focus on property energy performance,” he said.