Hong Kong Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Hong Kong Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects the Hong Kong construction industry to record growth of 1.9% in real terms in 2023, following an estimated growth of 1.4% in 2022. Weighing on construction activity in 2022 were the continuous rise in interest rates, supply chain challenges, China's COVID-19 lockdowns, rising infection rates, and labour shortages, which inflated construction costs and exacerbated project completion delays. However, growth this year will be aided by several infrastructure projects being implemented as part of the HKD100 billion ($12.8 billion) Northern Metropolis plan. In addition, the government injected HKD1.2 billion ($153.1 million) into the Construction Innovation and Technology Fund for Financial Year (FY) 2022/2023 to implement more concessionary measures and encourage the use of Modular Integrated Construction to expedite housing supply.

The industry's output is expected to increase by an annual average rate of 2.3% between 2024 and 2027, supported by investment in the transportation, electricity, housing, and industrial sectors. In its 2022 Budget, the government announced that major infrastructure projects worth HKD27.1 billion ($3.5 billion) will begin construction in FY2022/2023. The government announced in February 2022 that it will fund approximately HKD8.4 billion ($1.1 billion) of drainage improvement works to improve flood control capability and cope with climate change. Furthermore, the government has set aside HKD10 billion ($1.3 billion) for the completion of works to upgrade and expand university healthcare teaching facilities in order to accommodate approximately 900 additional healthcare training places by 2026. In the short term, the government aim to supply 20,000 transitional housing units by 2024, while for its Long-Term Housing Strategy, it has identified 350ha of land on which to produce 330,000 public housing units over the next decade.

The report provides detailed market analysis, information, and insights into Hong Kong's construction industry, including -

• Hong Kong's construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Hong Kong's construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Hong Kong. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Hong Kong, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.