Construction in Hong Kong - Key Trends and Opportunities to 2018

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Main Title
Market Research Report 
Construction in Hong Kong - Key Trends and
Opportunities to 2018  
reportscue
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Synopsis This report provides detailed market
analysis, information and insights into Hong Kong
construction industry including Hong Kong's
construction industry's growth prospects by
market, project type and type of construction
activity Analysis of equipment, material and
service costs across each project type within
Hong Kong Critical insight into the impact of
industry trends and issues, and the risks and
opportunities they present to participants in
Hong Kong construction industry Analyzing the
profiles of the leading operators in Hong Kong
construction industry . Data highlights of the
largest construction projects in Hong Kong
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Report OverviewThe Hong Kongs construction
industry recorded a CAGR of 14.90 during the
review period. This was supported by private and
public investments in infrastructural and
industrial construction projects. The outlook
for construction is favorable, as a result of the
governments focus on infrastructure and
residential construction. The continuation of
several large-scale infrastructure projects, a
prosperous tourism industry and increased
government spending on healthcare and education
will support industry growth. Government
efforts to increase land supply for commercial
and residential use will also drive the
industrys growth over the forecast period. The
construction industrys output is expected to
record a nominal CAGR of 8.87 over the forecast
period.
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Scope This report provides a comprehensive
analysis of the construction industry in Hong
Kong. It provides Historical (2009-2013) and
forecast (2014-2018) valuations of the
construction industry in Hong Kong using
construction output and value-add methods
Segmentation by sector (commercial, industrial,
infrastructure, institutional and residential)
and by project type Breakdown of values within
each project type, by type of activity (new
construction, repair and maintenance,
refurbishment and demolition) and by type of cost
(materials, equipment and services) Analysis
of key construction industry issues, including
regulation, cost management, funding and
pricing Detailed profiles of the leading
construction companies in Hong Kong
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Key Highlights The construction industry
recorded healthy growth during the review period,
primarily driven by construction of
infrastructure projects announced by the
government under its Policy Address in 2007.
According to the Census and Statistics Department
(CSD), the gross value of construction works
performed by private and public contractors
increased from HKD32.9 billion (US4.2 billion)
in the first quarter of 2013 to HKD34.6 billion
(US4.5 billion) in the first quarter of 2014 in
real terms. The industry is expected to grow
over the forecast period due to an influx of new
construction projects in Hong Kong, as the
government is committed to enhance Hong Kongs
economic development through infrastructural
development. In nominal terms, the construction
value add in Hong Kong reached HKD76.9 billion
(US9.9 billion) in 2013, after registering a
review-period CAGR of 11.21, and is projected to
reach HKD10.9 billion (US14.1 billion) by 2018,
after registering a forecast-period CAGR of
7.23. Hong Kong is one of the largest
recipients of direct investment from China.
According to the CSD, in 2012 China contributed
37 of total investments in Hong Kong. However,
the slowdown in the Chinese economy resulted in
reduced investment and capital inflows into Hong
Kong, which affected growth in the construction
industry. There is shortage of skilled
construction workers in Hong Kong according to
the Hong Kong Construction Association, around
20,000 extra workers are required to handle the
current workload in the construction industry, in
order to prevent an increase in costs. To meet
this shortfall, the government is planning to
renounce its rule on the import of foreign labor.
The proposed rule will allow the Labour Advisory
Board to import foreign workers for a particular
project if no local worker is available for that
vacancy.
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According to the Tourism Commission, the number
of visitors to Hong Kong in 2013 reached to 54.3
million, indicating an increase of 11.7 compared
to 2012. According to the Commerce and Economic
Development Bureau of Hong Kong, tourism
contributes 4.5 to Hong Kongs GDP and employs
230,000 citizens. The bureau estimates that
Hong Kong will receive 70 million visitors by
2017 and the bureau plans to develop
tourism-related infrastructure to handle the
rising number of tourists. Moreover, in 2014
budget, the government allocated additional funds
of HKD95 million (US12.2 million) for the Hong
Kong Tourism Board, which includes HKD50 million
(US6.4 million) to introduce new elements in
popular events, such as using 3D projection
mapping to show the night view of Victoria
Harbour and HKD45 million (US5.8 million) for
the promotion of exhibitions. Initiatives such
as these are likely to attract visitors to Hong
Kong, increasing investments in the leisure and
hospitality industry over the forecast period.
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Hong Kong International Airport (HKIA) is one
of the worlds busiest cargo gateway and
passenger airports. It handled 59.9 million
passengers and 4.1 million tons of cargo in 2013,
and is likely to reach full capacity in coming
years. According to the International Air
Transport Association, HKIA is projected to
receive 102 million passengers and 8.9 million
tons of cargo by 2030. To handle the growing
capacity, the airport authority has decided to
construct a third runway. The project secured
approval in 2014 and is expected to be
operational in 2023. Over the forecast period,
the growth in other infrastructure categories is
expected to be driven by the airports
expansion. To meet the growing demand, the
government continues to increase land
availability and the housing supply. In the 2013
budget, the government introduced 46 residential
sites under the 20132014 Land Sale Program, with
a potential capacity of building 13,600
residential units. The government will also
provide all sources of land supply for private
housing with the potential capacity of building
25,800 private residential flats. In its 2013
budget, the government has provided adequate land
to the Housing Authority for public housing, with
a capacity to build 79,000 public rental flats by
2018 and 17,000 home ownership flats by 2020. 
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Reason To Buy Identify and evaluate market
opportunities using our 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 business strategies using Timetric's
critical and actionable insight Assess
business risks, including cost, regulatory and
competitive pressures Evaluate competitive
risk and success factors To Get Details
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