In response to the Government’s call for the 2025 Policy Address Public Consultation, Hong Kong PropTech Association would like to contribute by presenting a submission.
INTRODUCTION
The Hong Kong PropTech Association (HKPTA) is a collaborative platform uniting property developers, investors, and PropTech startups to drive innovation in Hong Kong’s built environment. Aligned with the United Nations Sustainable Development Goals (UNSDG), we advocate for technology-enabled solutions that enhance urban liveability, sustainability, and economic competitiveness.
As Hong Kong advances its smart city ambitions, we propose policy recommendations to strengthen its role as a global innovation hub, foster Greater Bay Area (GBA) integration, and address critical challenges in future mobility, building automation, and fintech-enabled real estate.
“HONG KONG 4.0” – BUILDING A TECH-DRIVEN FINANCIAL GATEWAY
Hong Kong’s strengths in finance, legal infrastructure, and international connectivity position it as an ideal hub for Chinese tech enterprises and global capital—a vision embodied by “Hong Kong 4.0”. However, regulatory complexity and talent gaps currently hinder the growth of fintech and PropTech, limiting the realization of this potential.
1. Streamlining Fintech Licensing & Regulatory Sandboxes
The current regulatory environment presents substantial barriers for fintech startups, particularly those working with digital assets and cross-border financial solutions, where lengthy licensing procedures often delay innovation.
To address this, we propose expanding the existing Fintech Supervisory Sandbox to incorporate blockchain applications for real estate transactions and smart contract testing, which would accelerate approval processes for eligible companies. Additionally, implementing a risk-proportionate regulatory framework, similar to those successfully adopted in Singapore and the UK, would help maintain financial stability while fostering technological advancement.
2. Facilitating Real World Assets Tokenisation
While other global financial centers like Singapore and Dubai have made significant progress in adopting tokenized assets, Hong Kong's pilot initiatives in this area remain relatively limited in scope and impact.
To enhance competitiveness, the government should initiate pilot programs for commercial real estate tokenization in collaboration with the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) to develop standardized custody and trading protocols. Concurrently, creating a comprehensive legal framework for smart contracts would facilitate the automation of property transactions and lease agreements, further modernizing the real estate sector.
3. Strengthening Talent Development
The growth of Hong Kong's PropTech ecosystem is being hampered by critical skill shortages in several key areas, including PropTech engineering, digital asset regulation compliance, and artificial intelligence applications for urban development.
To bridge this gap, we recommend implementing fast-track visa schemes to attract international PropTech experts while establishing funded partnerships between industry and academic institutions like HKUST and HKU to develop specialized training programs. Furthermore, incorporating ESG principles and PropTech competencies into professional certification requirements for real estate and finance practitioners would help cultivate a more knowledgeable workforce.
NURTURING A SUSTAINABLE STARTUP ECOSYSTEM
Hong Kong is home to over 10,000 startups, yet they represent only 0.2% of the global startup landscape. Limited scale of market, fragmented adoption and risk-averse culture are the common challenges faced by startups. To cultivate a sustainable and collaborative startup ecosystem, we propose the following policy measures:
4. Supporting Local Start-up Through Government Procurement
To support local innovation, the government could take the lead in allocating a portion of public contracts to emerging tech companies. The government may consider taking a proactive leading role in adopting startup solutions through pilot-first initiatives. This approach could help lower market entry barriers and encourage industry leaders or major developers to adopt startup solutions.
For example, mandate PropTech trials in new public housing and infrastructure projects, including AI-powered facility management and modular construction, as well as creating a centralized PropTech portal to showcase successful pilots and streamline private-sector adoption.
5. Creating Tax Incentives for R&D and Adoption
Property developers lack incentives to adopt unproven technologies. To encourage broader industry adoption of PropTech and other emerging technologies, especially among landlords and property developers, the government may consider introducing a 1-to-1 tax deduction scheme for eligible Research and Development expenditures. This could be modelled after successful international frameworks such as the United States Research & Experimentation Tax Credit and the United Kingdom’s Research & Development Tax Relief.
6. Expanding the Smart-Space PropTech Incubation Program
The successful launch and operation of the Smart-Space PropTech co-working hub jointly developed by the Hong Kong Housing Society and Cyberport has already incubated 13 startups and is entering its second phase with 14 new entrants HKPTA further proposes to scale this initiative to other districts beyond Fanling; offer longer-term tenancy and subsidised rent for PropTech startups; and create thematic clusters (e.g., ESG, AI, IoT) to encourage cross-disciplinary innovation.
FUTURE MOBILITY
As Hong Kong progresses toward becoming a smart and sustainable city, future mobility will play a critical role in enhancing urban connectivity, accessibility and overall quality of life. To lead this transformation, the government may consider enhancing autonomous transport, low-altitude mobility and inclusive mobility solutions through pilot programmes, regulatory innovation and cross-boundary collaboration.
7. Piloting Autonomous Mobility in the Northern Metropolis
The Northern Metropolis offers an ideal testing ground, with its potential for integrated planning and advanced infrastructure. HKPTA recommends embedding smart features, such as 5G connectivity, smart lampposts and EV charging stations, into the district’s development blueprint from the outset.
8. Expanding the Low-Altitude Economy Sandbox
Regulations restrict eVTOLs and drones exceeding 150kg, limiting innovation. HKPTA suggests that the government should consider broadening the scope of the Low- Altitude Economy (LAE) Sandbox to include electric vertical take-off and landing (eVTOL) and drones exceeding 150kg. This aligns Hong Kong with international developments, just like Mainland China, the United States and the United Kingdom are advancing full-scale eVTOLs deployment for urban and intercity mobility.
9. Planning for Advanced Cross-boundary
In addition, HKPTA recommends accelerating cross-boundary route planning and drone logistics by exploring aerial corridors between Hong Kong and nearby cities such as Nansha, Qianhai and Guangzhou. This would enhance regional connectivity and position Hong Kong as a leader in next-generation transport innovation.
BUILDING AUTOMATION AND CONSTRUCTION TECHNOLOGY
With a severe aging population and a projected labour shortage in the future, it may be timely for the government to embrace automated building technologies to enhance safety, operational efficiency and sustainability.
10. Using the Northern Metropolis as a Pilot Area for Smart Building Planning
HKPTA recommends designating the Northern Metropolis as a pilot zone for smart building technologies. As a major strategic development zone with a focus on innovation, cross-boundary integration and sustainable urban planning, it offers ideal conditions for large scale deployment for PropTech solutions.
11. Incentivizing Smart Mobility Solutions for Aging Communities
Facing an increasingly aging population, the government may consider launching pilot programmes or providing funding support to subsidise the installation of automation technologies in aging public and private buildings.
Proposed Measures include deploying biometric access control systems (e.g. facial recognition, fingerprint scanning) to enhance residential security; installing AI- powered surveillance and safety monitoring (e.g. AI-enabled smart CCTV, fall detection sensors) to enable real-time incident response and improve safety for elderly residents; and retrofitting smart elevators and LiDAR navigation systems to Improve mobility and accessibility for seniors and people with disabilities.
12. Integrate PropTech into ESG and Decarbonization Goals
PropTech is increasingly recognised as a driver of ESG innovation, especially in facility management and carbon footprint reduction. We further advocate to incentivise PropTech adoption through ESG-linked subsidies or tax credits; and mandate PropTech solutions in new developments for energy monitoring, waste management, and smart parking.
GREATER BAY AREA COOPERATION
To unlock the full potential of PropTech innovation, the government may consider deepening its integration with the Greater Bay Area, tapping into shared data, resources, talent pools and market opportunities across the region.
13. Enhancing Cross-boundary Data Exchange
HKPTA suggests that the government enhance the Cross-boundary Data Exchange Scheme to enable secure and efficient two-way data exchange between Hong Kong and the Greater Bay Area.
To further enhance transparency and benchmarking, HKPTA also recommends the development of an Open Data Exchange Platform, a centralized, blockchain-backed system for property and energy data. This platform would serve as a trusted infrastructure for cross-boundary collaboration, enabling stakeholders to access reliable data for planning, innovation, and performance evaluation.
14. Facilitating University Tech Commercialization
To leverage the strengths of Hong Kong’s top-ranked universities, it is recommended that the government actively support efforts to bridge academic research with real- world applications. By accelerating the commercialization of PropTech innovations across the Greater Bay Area, Hong Kong can transform cutting-edge research into scalable solutions that drive smart city development.
15. Position Hong Kong as a Launchpad for Mainland PropTech Firms
HKPTA suggests that Hong Kong strengthen its role as a strategic springboard for mainland PropTech companies aiming for global expansion. Leveraging its international financial network, transparent legal framework, and bilingual business environment, Hong Kong offers mainland innovators, particularly in FinTech and supply chain technology. A practical and trusted platform to test, refine, and scale their solutions for overseas markets.
16. Establish a PropTech Standards and Certification Framework
To ensure quality and interoperability, the government should develop a certification scheme for PropTech products and services and collaborate with industry bodies to define standards for data security, system integration, and user experience.
PROPERTY MARKET
Hong Kong’s property market is a barometer of its economic vitality. By establishing a cross-border fund pool and enhancing the Capital Investment Entrant Scheme, the HKSAR government can effectively address current market challenges and foster a more balanced recovery. These initiatives not only aim to revitalize the property market but also position Hong Kong as a competitive hub for global talent and investment.
17. Establish a cross-border fund pool to facilitate mainland buyers purchasing property
To foster a balanced market recovery, we suggest that the government work with the Central government to introduce a cross-border "Property Connect" mechanism. Modeled after successful financial market connectivity schemes, this initiative would facilitate seamless property investments between Hong Kong and the Mainland, while encouraging Mainland talent to settle long-term in Hong Kong.
18. Further enhance the new Capital Investment Entrant Scheme (CIES)
We recommend the government consider further relaxing the CIES to permit investment in any-priced residential property and allow 100% of the purchase value to count toward the investment requirement. This would made Hong Kong more attractive to high-net-worth individuals and entrepreneurs and facilitate the absorption of the inventory of unsold completed private flats
CONCLUSION
With agile policymaking, well-designed incentives, and strengthened regional collaboration, Hong Kong is well-positioned to further its development as a technology-enabled financial hub and contribute to smart city advancement. These efforts can help foster innovation, enhance connectivity, and support sustainable urban growth across the region.
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