Asia’s leading financial hubs, Singapore and Hong Kong, have secured high rankings on the APAC Sustainably Led Cities Index Ranking for attracting investments in green real estate, among other neighbouring cities.
Singapore and Hong Kong, rival financial hubs in Asia, ranked high among other Asian cities on the APAC Sustainably Led Cities Index Ranking released by Knight Frank. The report underscored the two hubs’ hospitable environment in attracting investments to further reinforce sustainability initiatives and the development of green real estate in the region.
The research ranked cities based on three key factors- the mass of green and natural spaces available, green-rated commercial buildings certified with recognised ESG certifications, and lastly, observing the rate and scale of urbanisation pressure in a city. Leading at the top, Singapore is acknowledged for its robust green environment and increased financing for sustainable urban development projects state-wide.
Furthermore, the Knight Frank report spotlighted the Singapore Green Plan 2030, praising its “80-80-80 in 2030” initiative, which targets to reach a total of up to 80% of green buildings, with 80% of new projects committing to energy-efficient models, as well as improving the overall energy conservation for existing sustainable properties from 65% to 80% by the end of this decade.
The head of research for the Asia-Pacific region at Knight Frank, Christine Li, stated “Singapore stands out due to a comprehensive green building certification scheme and an ambitious plan to become a low-carbon built environment.”
Hong Kong and Shenzhen were ranked on 8th and 7th respectively, following Australia, New Zealand, Sydney, and Wellington, taking multiple factors into consideration, with emphasis on green infrastructure within cities, and most importantly, a local government’s ability to drive sustainable urbanisation and create a hospitable environment for green financing within the region.
Moreover, the report mentioned, “To incentivise developers to invest in sustainability, most government organisations in APAC (the Asia-Pacific region) have in place various green certifications to reward the building if it meets their requirements, these awards serve as a differentiating factor to buildings in the real estate market, allowing corporates to cultivate a positive image for themselves, and enhance returns on both the leasing rate and resale value of their buildings.”