the Continuation of Several Large-scale Infrastructure Projects, a Prosperous Tourism Industry and Increased Government Spending on Healthcare and Education Will Support Industry Growth in Hong Kong, According to a New Study on ASDReports

Thursday 14 August 2014, Amsterdam

The Timetric difference:

• Hit the nail on the head – Formulate and validate business strategies with critical insights into the impact of industry trends and issues, and the risks and opportunities they present to industry participants.
• Know the drill – by analyzing the profiles of the leading operators in the sector, along with data highlights of the largest construction projects in the region.
• The writing’s on the wall –with the construction industry in Hong Kong’s growth prospects by market, project type and type of construction activity

Report highlights:
The Hong Kong’s construction industry recorded a CAGR of under 15% during the review period and valued under HKD176 billion (under US$23 billion) in 2013. This was supported by private and public investments in Hong Kong’s infrastructural and industrial construction projects. The outlook for construction is favorable, as a result of the government’s focus on infrastructure and residential construction. 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 under 9% over the forecast period, to reach a value of over HKD270 billion (over US$35 billion) by 2018.

The contribution of Hong Kong’s industrial sector to the nations GDP is low, when compared to the services sector. Industrial construction was the smallest market in the Hong Kong construction industry in 2013, accounting for under 3% of the total industry value. After a slowdown in 2008 due to the economic crisis, the market rebounded in 2010 following integration with the Chinese economy, which made Hong Kong China’s leading trading partner, handling a substantial proportion of Chinas external trade. This attracted investors in Hong Kong, as a result of which the market recorded a review-period CAGR of over 63% to value under HKD5 billion (over US$634 million) in 2013.