Construction in Hong Kong – Key Trends and Opportunities to 2025 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Construction in Hong Kong – Key Trends and Opportunities to 2025 (H2 2021)” report has been added to ResearchAndMarkets.com’s offering.

The downturn in Hong Kong’s construction industry in 2020 followed three years of successive contractions of real output, with political uncertainty and widespread social unrest hampering activity in the sector. I

n 2020, disruption due to the Coronavirus (COVID-19) pandemic, as well as subsequent lockdown measures and tensions as a result of continued political intervention from China, further exacerbated the challenges faced by the industry. According to the Census and Statistics Department (C&SD), the value-add of the construction industry declined in the first quarter of 2021, falling by 3% year on year (YoY) – its 10th consecutive quarterly decline on a Y-o-Y basis since the fourth quarter of 2018.

The construction industry is forecast to record growth of 3.3% in real terms in 2021, owing to the global economic recovery and the government’s investment in infrastructure projects to stimulate economic growth. The commitment of government initiatives and new strategies to the travel and tourism sector will support commercial construction output over the forecast period.

The government’s HKD1.1 billion (US$146.8 million) of short- and medium-to-long-term initiatives will help to soften the impact of the sharp decrease in travel and tourism. In the 2021-2022 Budget, the government increased its expenditure on infrastructure by 8.9%, with spending rising from HKD77.3 billion (US$10 billion) in 2020-2021 to HKD84.1 billion (US$10.8 billion).

The construction industry is projected to record an average annual growth rate of 2% in real terms between 2022 and 2025, supported by the government’s attempts to stimulate economic growth, as well as public and private sector investments in industrial, institutional and energy and utility building projects. Growth will be further supported by the government-established HKD5 billion (US$644.9 million) funding scheme to promote the construction of transitional housing, in an attempt to improve affordability in what is the most unaffordable city globally.

Key risks associated with Hong Kong’s construction industry outlook include a worsening political crisis, following China’s decision to implement new national security laws for Hong Kong, and the subsequent decision by the US to remove Hong Kong’s special status. The US government’s trade war with China and the removal of Hong Kong’s special status is expected to decrease investment in the construction industry.

Scope

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Hong Kong, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

For more information about this report visit https://www.researchandmarkets.com/r/t7ehlw

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