Hong Kong PropTech Association (HKPTA)
Submissions for Hong Kong’s First Five-Year Plan (2026-2030) and the 2026 Policy Address
Introduction
The Hong Kong PropTech Association (HKPTA) is a collaborative platform uniting property developers, investors, technology companies and industry stakeholders to drive innovation across Hong Kong’s built environment.
As Hong Kong advances its first Five-Year Plan and accelerates its transition towards a technology-driven economy, structural barriers continue to impede innovation adoption and technology commercialisation.
HKPTA proposes four targeted policy recommendations to support technology commercialisation, smart city development and innovation investment, enhancing Hong Kong's long-term competitiveness and its role as a gateway between Chinese Mainland and global markets.
1. Position Hong Kong as an International Hub for Technology Solutions Sandbox and Gateway
The Challenge
Chinese Mainland technology companies seeking overseas expansion face challenges adapting to international standards and regulatory environments, while international companies entering the Chinese Mainland market require a trusted gateway. Despite the region's global innovation ranking, cross-boundary technology commercialisation remains hampered by regulatory differences, data flow restrictions and the absence of mutual recognition frameworks. Hong Kong's potential as a two-way technology gateway remains underutilised.
Recommendation
HKPTA recommends strengthening Hong Kong's role as a two-way technology gateway. The Government could position Hong Kong as the preferred testing and validation platform for Chinese Mainland technology companies before overseas expansion. Sector-specific innovation sandboxes could be developed in areas such as the low-altitude economy, artificial intelligence, robotics, smart construction and smart city technologies.
A cross-boundary technology certification framework could be established, enabling technologies validated in Hong Kong to gain international recognition and accelerating market access. This would strengthen Hong Kong's role as Asia's leading "test-before-scale" innovation hub.
2. Create a Smart City Pilot Zone in the Northern Metropolis
The Challenge
The Northern Metropolis represents Hong Kong's most significant urban development opportunity, yet the current approach to technology testing remains ad hoc and piecemeal. Companies seeking to pilot smart city technologies must negotiate case-by-case arrangements without a systematic framework, discouraging trials and limiting the city's ability to attract innovation investment.
Recommendation
HKPTA recommends designating a dedicated Smart City Pilot Zone within the Northern Metropolis to support the deployment of emerging technologies. The pilot zone could facilitate controlled trials of low-altitude economy applications, autonomous systems and robotics, smart construction technologies, AI-powered infrastructure management and smart community solutions.
The Government could provide targeted incentives and regulatory flexibility to encourage participation from enterprises, developers, universities and research institutions. This would attract technology companies and investment, accelerate commercialisation and reinforce the Northern Metropolis as Hong Kong's leading hub for smart city development.
3. Establish a Cross-Department Technology Ombudsman Office
The Challenge
While the Government has introduced various initiatives to support technology development, companies implementing pilot projects must navigate multiple departments with overlapping jurisdictions and divergent priorities. A single department's objection can derail an entire innovation project, and industry practitioners cannot directly challenge individual departments for fear of jeopardising future approvals. This fragmentation makes proptech deployment, safety innovation and regulatory modernisation unnecessarily difficult.
Recommendation
HKPTA recommends establishing a dedicated Technology Ombudsman Office to serve as a single point of contact for innovation projects. The office would facilitate cross-department coordination and approvals, help technology companies navigate government processes, and mediate when regulatory friction arises.
Crucially, this office should function as a coordinator, reconciling competing departmental interests while enabling innovation to proceed. The office should have the authority to engage with different departments and facilitate compromise on technology deployment matters, particularly in emerging sectors such as the low-altitude economy, artificial intelligence, robotics and smart construction. This would reduce deployment barriers, accelerate pilot projects and strengthen Hong Kong's position as a preferred platform for technology testing and commercialization.
4. Establish a Strategic Co-Investment Platform and Matching Fund for Innovation Enterprises
The Challenge
Access to growth-stage capital remains a critical barrier for technology companies in Hong Kong. The venture capital ecosystem is relatively underdeveloped compared to other global innovation hubs, and mid-sized enterprises face particular challenges in adopting new technologies due to conservative risk assessments, pricing disadvantages of startups, and cultural gaps between traditional corporate investors and startup environments.
Recommendation
HKPTA recommends establishing a strategic co-investment platform involving government-related and semi-public organisations (such as the Urban Renewal Authority, Hong Kong Mortgage Corporation, and Hong Kong Science and Technology Parks Corporation) to bridge the funding gap and encourage technology adoption. Through a transparent open pitch process, participating institutions would co-invest alongside private investors in technology companies with strong commercial potential. Beyond direct investment, the platform would encourage participating organisations to serve as anchor customers for technology startups, providing both capital and real-world testing environments.
A matching fund mechanism could also support mid-sized enterprises adopting digital solutions aligned with Government strategic objectives, reducing adoption risks and encouraging wider deployment. Recent initiatives such as the Cyberport-Taiping Innovation and Technology Fund and the HKSTP Co-Acceleration Programme demonstrate the viability of public-private partnership models in innovation investment.
Conclusion
With effective policy coordination, targeted support and strategic investment, Hong Kong is well positioned to accelerate technology commercialisation and innovation adoption. These measures can support future industries, enhance economic competitiveness and strengthen Hong Kong's position as an international innovation and technology hub in the years ahead.
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