Aug 27 2014
Reportbuyer.com has added a new market research report: Construction in Hong Kong – Key Trends and Opportunities to 2018
http://www.reportbuyer.com/industry_manufacturing/construction/construction_hong_kong_key_trends_opportunities_2017.html
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
Summary
The Hong Kong's 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 government's 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 industry's growth over the forecast period. The construction industry's output is expected to record a nominal CAGR of 8.87% over the forecast period.
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
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 Timetric's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
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 (C&SD), the gross value of construction works performed by private and public contractors increased from HKD32.9 billion (US$4.2 billion) in the first quarter of 2013 to HKD34.6 billion (US$4.5 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 Kong's economic development through infrastructural development. In nominal terms, the construction value add in Hong Kong reached HKD76.9 billion (US$9.9 billion) in 2013, after registering a review-period CAGR of 11.21%, and is projected to reach HKD10.9 billion (US$14.1 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 C&SD, 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.
- 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 Kong's 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 (US$12.2 million) for the Hong Kong Tourism Board, which includes HKD50 million (US$6.4 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 (US$5.8 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.
- Hong Kong International Airport (HKIA) is one of the world's 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 airport's 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 2013–2014 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.