Planting agarwood trees will be part of the Urban Renewal Authority's greening efforts.
In a blog, managing director Wai Chi-sing said it planned to plant agarwood trees in urban areas and has begun talks with the Agriculture, Fisheries and Conservation Department on the feasibility and cultivation of seeds.
It also plans to make a register to record growth, health and location.
Wai said there has been overlogging of agarwood trees in recent years due to the high value of its resin and the species is listed as endangered in many places.
But Jim Chi-yung, chair professor of geography at the University of Hong Kong, said the AFCD plants 10,000 agarwood trees in the countryside every year and it is "not really endangered."
"There is no problem if the authority wants to plant a few of them in the park, but the species cannot grow well at the roadside, where the climate is too dry and there is not enough soil."
Jim also said the species does not have high scenic value for urban areas.