The green building revolution in Asia has gained huge traction over the last decade. This is in large part thanks to organizations like LEED, who have driven the movement well and truly into the global market.
As is evident in the SmartMarket report on World Green Building Trends for 2016, just about every country in the world now has their own rating system for sustainable design in both the commercial and residential markets. There are some highly recognized and respected rating systems in Asia, which are helping Asian cities to earn their place in the Top 10 Global Cities for Green Building.
Here we’ll take a look at how the green building market is performing in the greater China region.
LEED Buildings in China
To date, the LEED-certification program has enjoyed rapid expansion in China. Having only been recently introduced, a total of 717 commercial buildings had already been green certified by February 2015. Those certified buildings also only account for less than half of the more than 2,200 that have already achieved or are under the process of LEED certification.
In terms of building space occupied, LEED-certified Grade A projects occupied 5.6 million m² across ten major cities in the greater China region. This shows a rapid expansion of the LEED driven green building market in China – at an increase of 7.4% of total space occupied for the same report in 2014.
LEED certified commercial buildings in Beijing, Guangzhou, Shanghai and Shenzhen currently account for more than 70% of buildings certified under its rating in the greater China region – at a total occupied space of 3.84 million m².
In the New Era of Green Buildings in China report, it can be observed that in five major cities in the region, the rental performance of LEED-certified Grade A green buildings enjoyed a higher rental performance when compared to non-certified buildings in those cities.
According to the report, the absolute value of LEED certified grade A office rental is higher than the market average. In most cities in the region, the average rental gap is between 10-30% higher for LEED-certified buildings when compared to non-certified buildings.
LEED Certified Buildings in Hong Kong
The first LEED-certified project was launched in Hong Kong in 2011. Since then, more than 6.8 million m² of green building office stock has been developed in the city, at an annual growth rate of 20% in the last 3 years.
The LEED-certified Grade A office occupancy rate remains at a stable 95%, while the rental performance of commercial green buildings in Hong Kong rises to a level 55% higher than non-certified buildings.
Although the greater China region is still largely a developing market for green building, it is likely to continue to see rapid growth in the development of the industry. The performance of the region presents a strong case for investment in the industry, with the asset value of green buildings rising with green investment – in design and technology – and ultimately leading to the all-important ROI rewards that investors are seeking.
Read the full report on green building market performance in China.