Summary

The Hong Kong construction industry declined at a CARC of 8.30% for the period 2003-2008. Non-residential sector's market share was 68.3% in 2008, while residential sector accounted for the balance 31.7%. The construction and real estate industry contributes to about 5% to 6% of Hong Kong's GDP. The annual GDP growth rate of Hong Kong was 3% in 2008 and was valued at approximately US$307.6 billion based on purchasing power parity. The real GDP increased by 6.4% compared with that of an year earlier. While the service sector registered the highest growth (7.4%), the growth rate of the construction sector is 1.1% in 2008 compared to last year. Hong Kong is known for its ability to rapidly construct high rise apartments. This capacity is predominantly attributed to specialized construction techniques, such as reclamation and design-and-build methods. But recently, the housing sector in Hong Kong has been shrinking and is estimated that the market is likely to continue to decline. The construction volume of residential housing in Hong Kong plummeted last year by 38 percent which has been the biggest decline in eight years.

According to Transport and Housing Bureau, the total number of units constructed in 2008 was 8,000 units. In 2008, the overall gross value of construction work done at construction sites was US$6.1 billion, Of that figure, construction work done in public sector construction sites accounted for US$1.9 billion and in private sites construction was valued at US$4.2 billion. Hong Kong managed to have a positive net export of services between 2003 and 2006. In 2006, there were US$267.5 million and US$240.4 million worth of construction services exported and imported respectively, resulting in a net export of services worth US$27.1 million. The total gross value of construction works performed by main contractors increased 8% in nominal terms, from a year earlier, to US$6.3 billion in the first 2 quarters of 2008.

The latest published statistics from the Census and Statistics Department shows that the number of establishments engaged in building and civil engineering industries is 19,057 as of 2006 whereas the number of persons directly engaged in these industries is135, 337. The unemployment rate of construction sector kept decreasing in three consecutive years as there were more job vacancies created by the major projects, e.g. Hong Kong West and Tsuen Wan drainage tunnel, rebuilt the Lo Wu Correctional Institution etc. There is no institutional or legal entry barrier to the construction market in Hong Kong. Foreign firms are required to fulfill the same set of criteria as local firms to get listed with the authority.

Table of Contents

Hong Kong Construction Market Analysis
Hong Kong Construction Competitive Landscape
Leading Hong Kong Construction Companies
Hong Kong Construction Market Forecast
Appendix