2024 Policy Address Submission

In response to the Government’s call for the 2024 Policy Address Public Consultation, Hong Kong PropTech Association would like to contribute by presenting a submission.

Government Leadership in PropTech Development

1. The Government should establish a PropTech Office led by a dedicated commissioner, to facilitate interactions between PropTech companies and the bureaucracy, and to advise government departments on regulatory updates to accommodate new technologies.

2. The Government should also take the lead to deploy PropTech and new technologies developed by local startups in public housing and properties to enhance living well-being, achieve net-zero emissions and improve management. One example is the applications of zero-energy, non-electric cooling products, such as cooling ceramic tiles, paint and lamination. Another example is the utilisation of AI technologies in detecting fallen trees, wild boars or unauthorised intrusions along railroads and other infrastructures.

Incentives to Private Sector in PropTech Development

3. The Government should offer tax benefits, such as tax credits and deductions, and Environmental, Social and Governance (ESG) subsidies for investments in PropTech research & development and startups in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

4. The Government can set up a Property Technology Innovation Fund to encourage property developers, management companies, and related businesses to explore and implement cutting-edge technologies in four focus areas, namely PropTech solutions, smart building technologies, sustainable construction and sustainable development, to position Hong Kong as a leader in sustainable and intelligent real estate development and contribute to the overall goal of becoming a smart and livable city. The Government should also incentivise the private sector for data sharing.

5. Making reference to the HK$500 million dedicated fund to help NGOs operating subvented welfare services meet their development needs for staff training and system enhancement, the Government should also support industry-wide technology transformation solutions that enable property industry stakeholders to make better-informed decisions to maximise senior housing access, option and quality. One potential solution is to establish a single-source platform that aggregates market demand and supply metrics for the Residential Care Homes for the Elderly (RCHE) market so that operators, investors, developers, healthcare providers, and other stakeholders can make informed decisions in identifying and serving markets needs in senior living.

Cross-border Cooperation and Spatial Data Exchange

6. To address talent shortage and boost the PropTech scene in Hong Kong, the Government should incentivise leading technology enterprises in Shenzhen to establish or expand their presence in Hong Kong. Closer cooperation between Hong Kong’s PropTech sector and its counterparts in the GBA will significantly aid the growth of the PropTech ecosystem.

7. Hong Kong should develop and promote GBA Common Spatial Data Infrastructures by leveraging the existing Hong Kong Common Spatial Data Infrastructure (CSDI) platform.

8. Hong Kong should also make reference to the case of Shanghai Data Exchange to establish a data trading platform that enables companies to transact their data assets.

Youth Education and Public Awareness

9. PropTech is an innovative concept that has captured the interest of the youth population but has a catch-all nature that may seem confusing to the public. The Government can partner with Hong Kong PropTech Association and other professional organisations to raise awareness of PropTech, preferably as a subset of science, technology, engineering, the arts, and math (STEAM) education. This will benefit our next generations by opening up new career paths, providing real estate investment knowledge, and nurturing entrepreneurship. It will also boost exposure for PropTech companies that are struggling to find real estate industry partners to test their products.