Dip in construction activity to cut 2024 tender prices

Tender prices for construction projects to slip by 2%.

Tender prices for Hong Kong’s construction projects in 2024 are projected to slip by 2% from 4% in 2023, Turner & Townsend reported.

This decline is attributed to the decreased construction activity in the private sector and reduced public project expenditure this year.

The construction sector's growth is also impeded by the shortage of skilled workers, rising labour costs, and high construction costs 

On the flip side, material costs are expected to lower this year due to a stronger Hong Kong dollar and reduced demand for materials from Mainland China.

Notably, the price of galvanised mild steel plates fell by 18.3% from December 2022 to December 2023, whilst prices for sand and aggregates decreased by 4.1% and 8.3%, respectively.

Meanwhile, Portland cement prices remained unchanged whilst sawn hardwood costs remained stable.

The Hong Kong government plans to develop 440,000 housing units by 2033-34, with a 70:30 split between public and private housing.

Capital works expenditure is projected to reach up to $90b, aiming to boost GBA connectivity via projects like 'GBA on the Rail'.