Construction sector sees 4.2% growth in Q423, totaling $71.3b

Main contractors saw an 8.8% nominal increase in total GVCW, reaching $271.0b, in 2023.

The Census and Statistics Department's Quarterly Survey of Construction Output reported on 11 March, a 4.2% YoY increase in the gross value of construction works (GVCW) for the fourth quarter (Q4'23), reaching $71.3b. Adjusted for inflation, real growth is 4.4%.

The private sector construction sites witnessed an increase of 16.5% YoY in nominal terms during Q4'23, whilst public sector sites experienced a 2.6% increase. 

However, GVCW at locations other than construction sites saw a 4.1% YoY nominal decrease over the same period, encompassing minor construction activities, building maintenance, and electrical installations.

In real terms, private sector site GVCW increased by 14.4%, public sector sites saw a 1.6% YoY rise, whilst GVCW at other locations decreased by 2.3% YoY in Q4'23. 

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For the full year of 2023, the total GVCW by main contractors increased by 8.8% YoY in nominal terms to $271.0b. Adjusting for inflation, the real growth was 9.9%.

Private sector site GVCW totalled $85.0b, up 27.0% YoY nominally, whilst public sector site GVCW reached $93.0b, a 0.7% nominal increase. GVCW at non-construction sites rose by 3.6% YoY nominally to $93.1b.

Moreover, residential buildings took the lead in the major end-use group, accounting for $69.8b in GVCW in 2023, a 49.8% YoY increase compared to 2022. 

Transport projects also constituted the second-largest group with $37.2b, up by 7.2% in nominal terms compared to the previous year.