Trends and Opportunities - Construction in Hong Kong 2019

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Trends and Opportunities on Construction in Hong
Kong
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Summary
Construction in Hong Kong Key Trends and
Opportunities to 2019 report provides detailed
market analysis, information and insights into
Hong Kong's construction industry, including -
The Hong Kong construction industry's growth
prospects by market, project type and type of
construction activity - Equipment, material and
service costs for each project type in Hong
Kong - Critical insight into the impact of
industry trends and issues, and the risks and
opportunities they present to participants in the
Hong Kong construction industry
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Synopsis Hong Kongs construction industry has
been expanding rapidly. In real terms, the
industrys output value recorded a compound
annual growth rate (CAGR) of 8.37 during the
review period (20102014). Growth was supported
by socio-political stability, improving investor
confidence and global economic conditions. Public
and private sector investments as part of the
Vision 2030 program also supported industry
growth. Over the forecast period (20152019),
industry growth is expected to be supported by
government investment in infrastructure and
housing construction projects.
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Scope This report provides a comprehensive
analysis of the construction industry in Hong
Kong. It provides - Historical (2010-2014) and
forecast (2015-2019) valuations of the
construction industry in Hong Kong using
construction output and value-add methods -
Segmentation by sector (commercial, industrial,
infrastructure, energy and utilities,
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)
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Reasons To Buy - Identify and evaluate market
opportunities using 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 critical
and actionable insight - Assess business risks,
including cost, regulatory and competitive
pressures - Evaluate competitive risk and
success factors
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Key Highlights - In December 2014, the Hong Kong
housing authority launched its Long-Term Housing
Strategy, through which it aims to increase
public rental housing (PRH) units, provide
subsidized flats, expand home ownership programs,
and stabilize the residential property market
through the steady supply of land. Using a PPP
model, the government aims to construct 480,000
housing units in Hong Kong during 20152025.
Accordingly, the public sector is expected to
construct 60.0 of the total housing target by
2025, which includes the construction of 290,000
housing units with a mixture of 200,000 PRH units
and 90,000 subsidized sale flats. The private
sector is expected to construct the remaining
190,000 units by 2025.
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- Hong Kong has one of the worlds least
affordable housing markets, with house prices
rising continuously during the review period.
According to the Rating and Valuation Department,
house prices rose by 21.3 in April 2014 as
compared to April 2013. The house price index
also increased by 274.2 from April 2004 to April
2015. Concerns over affordability have increased,
leading to the introduction of new laws and
policies. The increase in house prices can also
be attributed to the increased flow of money from
the central banks of developed countries
following the global financial crisis. To control
the forming of a real estate bubble, the
government in the year 2012 introduced several
price-control measures such as a 15.0 extra tax
for non-resident buyers, and higher minimum
down-payments.
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- With insufficient supply of freshwater, Hong
Kong depends on China for its water-supply needs.
To reduce its reliance on China, the government
is focusing on developing alternative water
resources. In 2008, the Water Supplies Department
implemented its Total Water Management Strategy,
which includes developing options for water
resources. The government also plans to build a
seawater desalination plant with an initial
capacity of 50.0 million m3 per annum, which may
be extended to 90 million m3 per annum. The
tender and funds for this project will be secured
between 2015 and 2017, with the aim of
commencing operations in 2020. - According to
the Hong Kong budget 20152016, international
visitors rose by 12.0 in 2014 compared to 2013.
The total number of visitors reached60.0 million
in 2014, and total tourism spending also rose by
9.0 compared to 2013, reaching a value of HKD2.7
trillion (US350.0 billion) in 2014.
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The government aims to promote multidestination
tourism for international visitors in alliance
with the Guangdong and Macau authorities. It also
plans to involve neighboring ports into the Asia
Cruise Fund. - To meet demand for international
schools from overseas families living in Hong
Kong, the Education Bureau is planning to
increase school areas by allocating vacant school
premises and sites for international school
development. In 2014, the bureau identified
another two vacant school premises and three
green-field sites for international school
development. The governments commitment to
developing the education sector will support
construction activity in the education buildings
category. With an investment of HKD5.1 billion
(US653.0 million) Ying Wa Girls School is
planning to redevelop. The project is expected to
be completed by 2018 with the Architectural
Services Department and the GHKSAR jointly
undertaking construction.
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Table of Contents
1 Executive Summary 2 Industry Outlook 3 Key
Issues and Developments 4 Market Data Analysis 5
Company Profile China Overseas Land Investment
Ltd 6 Company Profile China State Construction
International Holdings Ltd 7 Company Profile
Henderson Land Development Company Ltd
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To view the full Executive Summary and Table
of Contents, please visit Trends and
Opportunities on Construction in Hong Kong
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