Green residential demand to rise in long run: JLL

Studies showed that green residentials have a resale premium of 5-10%.

The demand for green residential units is expected to increase in the long run, JLL reported.

Citing studies, JLL noted that green residential units have a resale premium of approximately 5-10%, in comparison to conventional residential units in other cities.

This is even as Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL in Hong Kong, said he does not expect to see the trend of green residential projects as it is not a major selling point amongst developers.

“As such, we believe the demand for green housing will rise when the awareness of sustainability increases,” he said.

Data from HKGBC showed that as of May 2023, only 15 private residential projects in Hong Kong were awarded BEAM Plus Platinum ratings.

"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,” Cathie Chung, Senior Director of Research at JLL in Hong Kong, said.

“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."

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