Hong Kong property developers, blamed for the city’s housing crisis, cleaned up their act in 2021. Here’s how

They have been blamed for pushing the city’s home prices higher, leaving many unable to get on the property ladder.

But, in 2021, Hong Kong property developers tried to change their image by introducing environmental, social and corporate governance (ESG) initiatives, such as social housing and other projects aimed at benefiting the wider society.

Here is a list of some major ESG projects undertaken by the city’s developers in 2021:

New World Development

New World Development (NWD) announced the launch of subsidised homes at discounts ranging from 40 to 50 per cent in December, aimed at helping lower income groups get on the property ladder.

As part of New World Subsidised Housing, the developer will offer 300 one, two and three-bedroom flats on a site in New Territories West with a gross floor area of 130,000 sq ft to buyers who are permanent Hong Kong residents and first-time buyers aged between 25 and 45.

Once approved by the government, the developer will donate the plot to New World Build for Good, its non-profit social housing enterprise which was formed in September this year. NWD will also fund the unit, which will develop the flats.

In January 2021, NWD became the first developer globally to issue a US dollar sustainability-linked bond, committing to using 100 per cent renewable energy by 2026 for its rental properties in the Greater Bay Area.

If it fails to do so, it will pay a penalty worth 0.25 per cent of the bond per year that will go towards carbon offset schemes.

Henderson Land Development

Applications for Hong Kong’s largest transitional housing project in Yuen Long, a joint venture between Henderson Land and Pok Oi Hospital, opened in October.

The 1,998 flats in Kong Ha Wai Village will be leased to low-income households that have been on the public housing waiting list for at least three years, and those living in dire conditions or having other critical needs. Henderson Land loaned a parcel of land to the project for a nominal sum of HK$1 (US$0.13) over a period of seven years.

In June, the developer also launched a series of lucky draws to incentivise the public to get vaccinated against Covid-19. The prizes were worth about HK$10 million and included 300 taels of gold, as well as more than HK$4 million in coupons to be used at its businesses and subsidiaries.

Wheelock Properties

In March, Wheelock Properties received Town Planning Board approval to develop 1,236 transitional housing units in 11 low-rise blocks in Wong Yue Tan, near Tai Po Industrial Estate in New Territories. The developer loaned the site to charity Lok Sin Tong in 2019 for eight years at a token sum of HK$1. Each unit measures about 200 sq ft.

Wheelock and Henderson also jointly submitted a plan under the Land Sharing Pilot Scheme in August to build 12,120 units on 19.3 hectares (2.08 million sq ft) of farmland in Lam Tsuen, Tai Po. About 70 per cent, or 8,484 units, will be set aside for public housing.

Sun Hung Kai Properties

Sun Hung Kai Properties (SHKP) has started construction on United Court, its transitional social housing project in Yuen Long, developed together with NGO Hong Kong Sheng Kung Hui. The groundbreaking ceremony for the project was held in June.

Upon completion in 2022, around 1,800 units will be available for underprivileged families. SHKP leased the site to the NGO for a nominal sum of HK$1 over a period of eight years in 2020.

In August, the developer also submitted its application for the Land Sharing Pilot Scheme, seeking to build 4,090 units at a site in Yuen Long, of which more than 2,600 will be public housing or starter homes.

In June, the developer also offered HK$10 million in lucky draws to encourage vaccinations among the public and its employees.

Sino Group

In May, Sino Group and Ng Teng Fong Charitable Foundation, its philanthropic arm, and Chinese Estate Holdings announced that they would donate a new 449 sq ft one-bedroom flat in Kwun Tong worth HK$10.8 million for a lucky draw aimed at encouraging the public to get vaccinated.

In December, Ng Teng Fong Charitable Foundation donated 200 prizes of prepaid bank cards with a value of HK$10,000 each for vaccinated residents aged 70 or above, to encourage the elderly to get vaccinated.

Hang Lung Properties

In October, Hang Lung Properties announced that it had partnered with local start-up Ampd Energy to deploy Enertainer, a battery energy storage system that can help reduce greenhouse emissions at constructions sites, to replace diesel generators at their redevelopment project in North Point and at residential project The Aperture in Kowloon Bay.

In June, the developer also launched initiatives worth more than HK$10 million to encourage staff and customers to get vaccinated, including online shopping coupons and two days of paid vaccination leave.

Adriel Chan, Hang Lung’s vice-chairman, said at the Asian Corporate Governance Association annual conference in November that he wanted women to one day make up half of the company’s board. The company currently has only one woman director.

Swire Properties

Swire Properties set new science-based targets to limit the global temperature rise to 1.5 degrees Celsius in 2021. These include measures to reduce greenhouse gas emissions from its operations by 25 per cent in 2025 and 46 per cent in 2030, from 2019 levels.

In July, the developer also partnered with Spare-it, a Boston-based clean technology start-up, to launch a waste reduction challenge among tenants in its office buildings as well as staff.

CK Asset Holdings

In June, CK Asset Holdings, CK Hutchison Holdings and the Li Ka Shing Foundation announced that they would give away a total of HK$20 million worth of vouchers to fully vaccinated Hong Kong residents through a lucky draw.