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.
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