Hong Kong Construction Industry Report 2025: Output to Slow from an Estimated 4% in 2024 to 0.7% in 2025 - Forecast to 2029 - ResearchAndMarkets.com

The "Hong Kong Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Growth in Hong Kong's construction industry to slow from an estimated rate of 4% in 2024, to 0.7% in 2025, owing to headwinds such as high interest rate, geo-political tensions, slump in the property sector, and rising budget deficit.

In December 2024, Hong Kong's finance chief doubled the budget deficit forecast to HKD100 billion ($12.8 billion) in Financial Year (FY) 2024-25 (April 2024 to March 2025) - up from a previous forecast of HKD48 billion ($6.1 billion) made in February 2024. The worsening of the budget deficit forecast is a result of the soft property market, which has impacted government's revenue generated from land sales, stamp duty and corporate taxes.

According to government data, land sales from April to September 2024 totalled HKD4.5 billion ($575.6 million) - equivalent to only 13.6% of the original estimate. Similarly, revenue from stamp duties totalled HKD24 billion ($3.1 billion) during the same period - equivalent to 33.8% of the estimate. As a result, overall government revenue totalled HKD117.6 billion ($15 billion) from April to September 2024 - equivalent to 18.6% of the estimate.

Over the remainder of the forecast period, the construction industry's output is expected to register an annual average growth rate of 2.6% from 2026-29, supported by investments in transport, electricity, housing, and industrial projects. The government plans to develop three major road schemes and three strategic railway projects to drive and support the city's development by 2030. It involves six projects that will result in a highly interconnected and accessible road network and rail system, as per the "Railways and Major Roads beyond 2030".

In another boost to the infrastructure sector's output, in December 2024, the Legislative Council by the Transport and Logistics Bureau reported that work is progressing on the Tung Chung Line (TCL) Extension, Tuen Mun South (TMS) Extension, Oyster Bay (OYB) Station, Northern Link (NOL) Phase 1 Kwu Tung (KTU) Station, and Hung Shui Kiu (HSK) Station, with completion of these projects scheduled from 2027 onwards. Moreover, construction works of the NOL Main Line is planned to commence in 2025 and be completed in 2034.

Furthermore, in November 2024, the Finance Committee of the Legislative Council approved HKD21.5 billion ($2.8 billion) for the widening of Hiram's Highway between Marina Bay and Sai Kung Town. The project includes expanding two sections of Sai Kung Highway (3.5km total) from a two-lane to a dual two-lane carriageway, as well as upgrades to Pak Sha Wan and surrounding roads. Additionally, it plans for a pedestrian subway and improvements to drainage, waterworks, and public transportation. The construction is expected to start in 2025 and be completed by 2027.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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 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 the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

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 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

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 Methodology

For more information about this report visit https://www.researchandmarkets.com/r/gv5n26

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