Green Real Estate in Hong Kong: Standards and Incentives

Published on October 31, 2025 and written by Cyril Jarnias

In a global context where sustainability is at the forefront of concerns, Hong Kong is positioning itself as a pioneering model of green innovation in real estate. By 2025, the city is launching an ambitious set of environmental standards coupled with attractive subsidies to encourage developers and property owners to adopt eco-friendly practices.

These initiatives aim to reduce the urban carbon footprint while stimulating the local economy, offering a turnkey solution for those looking to combine environmental responsibility and profitability. By exploring these forward-thinking measures, this article reveals how Hong Kong is paving the way toward a greener, more sustainable future in real estate.

Environmental Standards for Green Real Estate in Hong Kong

The environmental standards in effect in Hong Kong for green real estate primarily rely on BEAM Plus certification, a major local benchmark, supplemented by other international standards such as LEED and BREEAM. The anticipated evolution through 2025 aims for a gradual strengthening of requirements and increased integration of innovative criteria for urban sustainability and energy efficiency.

Major Environmental Certifications in Hong Kong

Certification	Origin	Scope	Main Criteria
BEAM Plus	Local (HK)	All building types (new or existing)	Energy, carbon, climate adaptation, transportation, site ecology, materials & waste, water, occupant health & well-being, pollution management
LEED	USA	International	Energy & atmosphere, materials & resources
BREEAM	UK	International	Sustainable site management and construction

• BEAM Plus, administered by the Hong Kong Green Building Council (HKGBC), is the main assessment system. It assigns a level (Platinum / Gold / Silver / Bronze) based on credits earned across different areas: energy/carbon performance; climate resilience; sustainable mobility; urban biodiversity; responsible resource use.
• International certifications like LEED or BREEAM are also recognized for certain projects aiming for global alignment.

Key BEAM Plus Criteria:

• Reduction of energy consumption
• Decrease in carbon emissions
• Integration of smart/innovative solutions
• Efficient management of water and waste
• Improvement of indoor well-being

Expected Evolution Through 2025

Anticipated trends include:

• Gradual strengthening of required energy thresholds.
• Increased consideration of climate change in criteria.
• Explicit promotion of smart technologies (“smart building”).
• Growing alignment with international standards.

Challenges Related to Aligning with These Standards

List of main challenges:

• High initial costs related to technical studies and early integration of green solutions.
• Administrative complexity: need for detailed documentation throughout the project.
• Potential rigidity during adjustments in construction or operational phases.

Summary List:

• Additional financial investment required from the design stage.
• Increased need for certified specialized expertise (BEAM Pro…).
• Limited adaptability to rapid regulatory changes.

Opportunities Offered by These Standards

Summary List:

• Increased property valuation through locally/internationally recognized environmental labels.
• Easier access to certain “green” financing.
• Significant long-term reduction in operational costs through better energy efficiency.
• Tangible contribution to urban sustainability goals.

Government Efforts and Private Collaborations

Stakeholder	Main Actions
HK Government	Tax incentives for green buildings; promotion among public developers
HKGBC + partners	Continuous development of the BEAM Plus framework
Private partnerships	Pilot projects demonstrating construction innovations

The government actively encourages compliance through targeted financial/tax incentives. The private sector collaborates with HKGBC to test and then widely deploy technological or procedural innovations meeting the new criteria.

Potential Impact on Urban Sustainable Development

The widespread application of BEAM Plus gradually leads toward urban planning that is more resilient to climate change, a marked reduction in the real estate carbon footprint, and stimulates better architectural quality focused on overall well-being—all major assets for positively evolving Hong Kong’s built environment by 2025.

In summary: these standards strongly structure the qualitative evolution of Hong Kong’s real estate portfolio—they generate constraints but also decisive competitive advantages in an international context where energy efficiency and ecological responsibility are becoming essential.

Government Incentives for Eco-Construction

Main Standards and Policies for Eco-Construction in Hong Kong in 2025

The Hong Kong government has implemented several structuring measures to encourage eco-construction and carbon footprint reduction in the building sector:

• Direct financial subsidies:
  • Grants for installing green infrastructure, such as fast-charging stations (target of 3,000 stations by 2030) and hydrogen stations.
  • Specific “EV-charging at Home Subsidy Scheme” program supporting the creation of parking spaces equipped for electric vehicles (200,000 planned by mid-2027).
• Tax reductions and regulatory incentives:
  • Concessions on gross floor area granted to projects integrating eco-responsible devices or equipment related to clean mobility.
  • Targeted tax benefits for investments in low-carbon technologies.
• Additional incentives:
  • Dedicated funds for green technology development, particularly through support for hydrogen research and its local certification.
  • Direct support for pilot projects using sustainable or innovative materials, as well as recycling in the construction sector.

Targeted Environmental Goals

The adopted measures primarily seek to:

• Significantly reduce CO₂ emissions from the new real estate sector by promoting:
  • Increased use of renewable energy
  • Bioclimatic design
  • Systematic integration of low-consumption solutions
• Promote sustainable architecture through:
  • Strengthened standards on energy performance
  • Increased requirements for thermal efficiency

Incentive	Description	Expected Impact
EV Subsidies	Funding for charging station installation	Acceleration of green mobility
Tax Exemptions	Reduction in taxes/green investments	Increased adoption of innovation
Buildable Area Bonus	Increased GFA if green criteria met	Larger sustainable projects
R&D Funds	Support for materials/construction innovation	Diffusion of low-carbon techniques

Recent Examples of Projects Benefiting from Incentives

• Accelerated deployment of residential real estate largely equipped with subsidized electric charging points.
• Recent construction of the new “Airport City” district, designed with high energy efficiency standards and directly benefiting from regulatory bonuses.

Observed/Expected Impacts on the Green Real Estate Market

• Sustained growth in the “green buildings” segment, stimulated by a strengthened incentive framework.
• Notable increase in private investments in eco-responsible infrastructure, favored by reduced financial risk for technical innovations thanks to public subsidies.
• Gradual mitigation of the often high initial cost associated with eco-friendly choices, making these options more accessible.

Difficulties Encountered or Anticipated During Implementation

• Public budget constraints, exacerbated by a persistent fiscal deficit that sometimes limits the scope or rapid renewal of allocated financial aid.
• Persistent shortage of qualified labor, hindering some ambitious construction projects despite massive efforts in specialized vocational training over several years.
• Rising costs of eco-friendly materials, exacerbated by increased global volatility and certain regional logistical barriers.
• Administrative complexity related to simultaneously obtaining multiple aids; risk that only certain major players can fully benefit from the current system.

Key Takeaway: Hong Kong’s ambitions now place eco-construction at both the economic and environmental center—but their realization will closely depend on the collective ability to overcome these structural obstacles.

Understanding BREEAM Certification in Hong Kong

BREEAM certification (Building Research Establishment Environmental Assessment Method) is an international standard created in 1990 in the United Kingdom that assesses the environmental performance of buildings, regardless of their type or use. Its main objective is to promote sustainable design, construction, and management practices to reduce the ecological impact of buildings throughout their life cycle.

BREEAM’s Main Objective:

• Encourage energy efficiency and responsible resource management.
• Improve user comfort and innovation in construction.
• Reduce the overall environmental footprint of buildings.

Adoption and Adaptation of BREEAM in Hong Kong:

• Hong Kong introduced BREEAM to meet the growing demand for sustainable buildings in a dense, subtropical urban context.
• Local adaptations have been integrated, such as consideration of specific climatic conditions (humidity, heat), rainwater management, and priority given to indoor air quality.
• Specific versions, like BREEAM International or local technical guides, have been used to incorporate Hong Kong regulatory requirements and construction standards.

Examples of BREEAM-Certified Buildings in Hong Kong and Met Criteria:

Building	BREEAM Level Achieved	Main Criteria Met
One Taikoo Place	Excellent	Energy efficiency, water management, sustainable materials, indoor air quality
The Quayside (Kwun Tong)	Very Good	Waste management, sustainable mobility, accessibility
International Commerce Centre	Excellent	Energy management, innovation, occupant comfort

Generally Met Criteria:

• High energy efficiency (insulation, LED lighting, high-performance HVAC systems)
• Rational water use (recovery, consumption reduction)
• Low environmental impact materials
• Easy access to public transport and soft mobility
• Optimization of user well-being and comfort

Impact of BREEAM Certification on Hong Kong’s Real Estate Market:

Economic Benefits:

• Increased valuation of certified real estate properties on the market.
• Reduced operational costs through better energy efficiency and optimized resource management.
• Enhanced attractiveness for international investors and tenants sensitive to CSR issues.

Environmental Benefits:

• Reduction in CO₂ emissions and local pollution.
• Improvement in urban biodiversity through integration of green spaces and nature-based solutions.
• Promotion of urban planning more resilient to climate change.

Trends Expected for 2025 Regarding BREEAM Certification in Hong Kong:

• Increase in the number of certified projects due to stricter local regulations and increased demand for green real estate.
• Strengthened integration of BREEAM in public policies: tax incentives, subsidies, and buildability bonuses for certified buildings.
• Focus on biodiversity, climate resilience, and user well-being as priority assessment areas.
• Development of digital tools for real-time monitoring of environmental performance (BREEAM In-Use).

In Summary:

BREEAM certification, adapted to Hong Kong’s local context, has become a strategic lever for the sustainable transformation of the real estate sector, bringing both significant economic and environmental benefits and fully aligning with the regulatory and innovation dynamics expected by 2025.