Impressive Growth for Hong Kong Construction Sector

Hong Kong's construction sector is booming.

Construction projects executed last year by major contractors in Hong Kong had increased the total gross value 24.2 percent in nominal terms from 2011.

According to the government's statistics and census department, HK$159.6 billion (£13.8 billion) worth of construction was performed. After eliminating the price changes effect, in real terms the total gross value of work increased 15.6 percent.

At HK$36.8 billion, the largest share was accounted for by residential building projects, which in nominal terms was up 40.9 percent. The second largest with an increase of 53.1 percent in nominal terms, transport projects totaled HK$29.9 billion.

Hong Kong Construction Sector

In 2012, the gross value of private sector site construction work was up 30 percent in real terms or 37.5 percent in nominal terms to HK$48.5 billion. For construction at public-sector sites, the gross value was up 21 percent in real terms of 26.9 percent in nominal terms amounting to HK$53.4 billion.

For work carried out in other locations outside designated construction sites, the gross value grew to $HK57.7 billion last year, up 1.5 percent in real terms and 12.8 percent in nominal terms.

Main contractors' construction work carried out in the fourth quarter increased 15.3 percent in real terms or 23.9 percent in nominal terms from the previous year to HK$45.4 billion.

Construction works carried out at private-sector sites in the fourth quarter had its gross value grow 24.4 percent in nominal terms, compared to that undertaken at public-sector sites grew 32.5 percent. In nominal terms, work at locations outside of construction sites increased 16.3 percent.

The construction market in Hong Kong is worth about £12 billion annually. Over 40 percent of construction output was constituted by infrastructure, according to a BMI analysis.

The Hong Kong government has devised the Construction Industry Vision 2020: a strategy to maintain their built environment on top of global and regional rankings. For the next seven years, five development areas have been identified.

This includes developing a long-term sustainable and viable construction industry, productivity and efficiency, procurement process and business ethics, energy efficiency and environmental awareness, and health, safety and quality of life.

Image Credit albert_lee