Summary

Hong Kong’s construction industry contracted by 4.4% in real terms in 2020, due in part to the disruptions caused by the Coronavirus (COVID-19) outbreak, subsequent lockdown measures and uncertainty following political interference from China. Prior to the COVID-19 outbreak, the industry had been struggling amid a general slowdown in residential construction and a sharp drop in transport infrastructure works, coupled with local protests in the country that impacted investor confidence in 2020. According to the Census and Statistics Department (C&SD), the country’s construction industry continued to decline in the third quarter of 2020, contracting by 10.6% year on year (YoY) in real value-add terms, marking the eighth consecutive quarterly decline on a Y-o-Y basis since the fourth quarter of 2018.

In 2021, the construction industry is expected to register growth of 1.5% in real terms, supported by a recovery in global economic conditions and government investment on infrastructure projects to revive economic growth. The ongoing development and distribution of vaccines provides some hope that the spread of COVID-19 will be contained, reducing the risk of a repeat of the severe disruption that occurred during much of the first half of 2020.

A recovery in economic activity should enable the government to expand fiscal expenditure on major infrastructure projects, supporting industry growth. According to the advanced estimates from the C&SD, in the fourth quarter of 2020, the economy performed better than expected. The Y-o-Y GDP decline slowed to 3% in Q4 2020, as compared to the Y-o-Y declines of 3.6% in Q3, 9% in Q2 and 9.1% in Q1 2020. This improvement was driven by growing domestic consumption and private investment, which was backed by the gradual easing of social distancing measures and full imposition of fiscal stimulus measures in September 2020.

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 overall economy, as well as in the construction industry.

This report provides detailed market analysis, information, and insights into Hong Kong’s construction industry, including -

  • Hong Kong’s construction industry’s growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Hong Kong’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.




Scope

This report provides a comprehensive analysis of the construction industry in Hong Kong. It provides -

  • 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




Reasons To Buy

  • Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData’s critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.