Construction receipts climb to $474b even as profit margins tighten

Gross surplus fell 5.9% despite the higher industry value added.

Hong Kong’s construction industry expanded in 2024, though rising costs pressured margins. Data from the Census and Statistics Department (C&SD) showed total receipts reaching $473.7b, up 5.0% year on year, with average receipts per company rising 9.8% to $18.2m. 

Operating expenses and employee compensation increased 6.0% to $440.1b, pushing gross surplus down 5.9% to $33.6b, or 7.1% of receipts, 0.8 percentage points lower than a year earlier according to C&SD. Industry value added still rose 4.0% to $138.3b, with the sector comprising 26,000 companies and 197,500 workers.

Real estate activities booked $180.0b in receipts, a slight 0.2% decline, whilst gross surplus edged up 0.4% to $71.5b, equal to 39.7% of receipts. Industry value added increased 1.5% to $116.0b, supported by 11,500 firms employing 125,500 people.

Architectural, surveying and engineering services generated $29.1b in receipts, a 4.9% rise. Gross surplus slipped 4.1% to $3.6b, or 12.2% of receipts, whilst industry value added advanced 4.2% to $19.6b. The segment covered 2,400 companies with 28,100 employees, according to the report.