Residential projects dominate construction works in 2017

The gross value of home projects rose 1.4% in nominal terms to $66.1b.

Residential projects dominated construction works in 2017 after rising 1.4% YoY in nominal terms to a gross value of $66.1b as the administration steadily builds up its private and public housing supply to plug the city’s severe housing gap, according to a government press release. 

Transport projects followed as the second largest group of construction site works last year with gross value down 0.8% YoY in nominal terms to a gross value $49.7b. This comes as the government fast-tracks a fresh wave of high-value road, rail and airport projects following the completion of the Hong Kong-Macau-Zhuhai Bridge and Hong Kong-Shenzen Express Rail Link last year. 

Despite the decline, transport projects may be soon usurp home projects in the long-run and dominate Hong Kong’s future infrastructure projects. “Highway expansions, new urban transit lines and a third runway and terminal at Hong Kong International Airport are all project proposals that will generate investment and construction opportunities in the city over the coming years,” said BMI Research. 

The report also noted that construction works at public sector sites overtook private sector efforts after inching up marginally by 0.2% YoY to value at constant market prices of $55b in 2017 whilst works at private sector sites fell 9.9% YoY to $41.91b over the same period.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Property sales fell by almost 21% in June
Over 6,290 sale and purchase deals for all units were received for registration.
High-street shop vacancy rises to 16.5% in Q2 22
Amongst core districts, Tsim Sha Tsui had the biggest vacancy rate.   High-street shop vacancy rose 1.3 percentage points from Q122 to hit 16.5% in Q2 22, data from CBRE showed.   The increase in vacancy was likely due to some landlords, who are under limited financial pressure, opting to leave units vacant rather than renting them out.   This practice was most evident in Tsim Sha Tsui and Mong Kok where vacancy rates were the highest, at 23.2% and 18.9%, respectively.   Whilst vacancy rose during the quarter, rents remained flat. According to CBRE, rents were unchanged from Q122 because “cash-rich landlords with strong holding power prevented some units from transacting at lower rents this quarter.”   In addition to rents being unchanged, leasing volume also increased in Q2, signalling an improvement in the retail property sector.   “Improved retailer sentiment underpinned an increase in transaction volume, although many deals signed this quarter involved short-term leases,” CBRE commented.