Hong Kong's green-certified building supply struggles to meet demand

Other APAC countries are experiencing the same.

Hong Kong faces a shortage of green-certified buildings amidst strong occupier demand, JLL reported.

“The supply may not be able to meet the increasing demand in the long term. Even including the projects in the pipeline, the majority of buildings in Hong Kong will not be green certified,” said Helen Amos, head of Sustainability, Hong Kong at JLL.

Observers note the same situation across Asia-Pacific.

JLL reported that from now until 2028, developers will only create two square feet of low-carbon space for every five square feet of demand.

Demand-wise, 87% of occupiers surveyed across the region target 100% green-certified portfolios by 2030, up from 4% of certified portfolios currently. 

The sentiment is particularly strong in countries including India, Malaysia and Thailand, where over 95% of occupiers are targeting 100% green-certified portfolios, JLL said.

To address the problem in Hong Kong, Amos said developers can retrofit existing buildings to deliver environmental performance on par with, or even exceed, that of newly constructed buildings. 

“Recently, some of the existing buildings have achieved the BEAM Plus Existing Buildings and LEED for Operations and Maintenance(O&M) certifications, this move allows developers to meet and capitalise on the growing demand for green office space among occupiers, effectively bridging the gap between supply and demand in Hong Kong's green building market,” she added.