Financial constraints and skills shortage obstruct construction sector growth

Private and private non-residential workloads fell in Q2.

Overall construction activity in Q2 2024 was sluggish, with the overall net balance sitting at -19, down from -14 in Q1, according to the RICS Global Construction Monitor.

Private and private non-residential workloads remained in the negative, with net balances of -41 and -28 respectively, down from -33 and -27 in Q1.

The decrease in construction activity was due to financial constraints with a net balance of +72, followed by cost of materials (+70) and insufficient demand (+67).

In terms of skills shortage, Hong Kong struggles with a lack of managers (+59), skilled trades (+55), and quantity surveyors (+52).

Meanwhile, infrastructure workloads remained positive at +10, up from +6 in Q1.