Construction in Hong Kong - Key Trends and Opportunities to 2018

Published: Jul, 2014 | Pages: 76 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)


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 
Reason 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.

 1 Executive Summary
2 Market Overview
2.1 Key Trends and Issues
2.2 Benchmarking by Market Size and Growth
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Sun Hung Kai Properties Ltd
8.1 Sun Hung Kai Properties Ltd - Company Overview
8.2 Sun Hung Kai Properties Ltd - Business Description
8.3 Sun Hung Kai Properties Ltd - Main Services
8.4 Sun Hung Kai Properties Ltd - History
8.5 Sun Hung Kai Properties Ltd - Company Information
8.5.1 Sun Hung Kai Properties Ltd - key competitors
8.5.2 Sun Hung Kai Properties Ltd - key employees
9 Company Profile: Kerry Properties Ltd
9.1 Kerry Properties Ltd - Company Overview
9.2 Kerry Properties Ltd - Business Description
9.3 Kerry Properties Ltd - Main Services
9.4 Kerry Properties Ltd - History
9.5 Kerry Properties Ltd - Company Information
9.5.1 Kerry Properties Ltd - key competitors
9.5.2 Kerry Properties Ltd - key employees
10 Company Profile: Poly Property Group Co., Ltd
10.1 Poly Property Group Co., Ltd - Company Overview
10.2 Poly Property Group Co., Ltd - Main Services
10.3 Poly Property Group Co., Ltd - Company Information
10.3.1 Poly Property Group Co., Ltd - key competitors
10.3.2 Poly Property Group Co., Ltd - key employees
11 Company Profile: Cheung Kong (Holdings) Ltd
11.1 Cheung Kong (Holdings) Ltd - Company Overview
11.2 Cheung Kong (Holdings) Ltd - Business Description
11.3 Cheung Kong (Holdings) Ltd - Main Services
11.4 Cheung Kong (Holdings) Ltd - History
11.5 Cheung Kong (Holdings) Ltd - Company Information
11.5.1 Cheung Kong (Holdings) Ltd - key competitors
11.5.2 Cheung Kong (Holdings) Ltd - key employees
12 Company Profile: NWS Holdings Ltd
12.1 NWS Holdings Ltd - Company Overview
12.2 NWS Holdings Ltd - Business Description
12.3 NWS Holdings Ltd - Main Products and Services
12.4 NWS Holdings Ltd - History
12.5 NWS Holdings Ltd - Company Information
12.5.1 NWS Holdings Ltd - key competitors
12.5.2 NWS Holdings Ltd - key employees
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is this Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 - SPL - Taikoo Place Office Tower - Hong Kong
Table 3: Commercial Construction Project 2 - WCL - Kwun Tong Commercial Center - Hong Kong
Table 4: Commercial Construction Project 3 - WDC - Disneyland Hotel - Hong Kong
Table 5: Industrial Construction Project 1 - TSBL/MVPRV - Electric Vehicle Manufacturing Plant - Hong Kong
Table 6: Infrastructure Construction Project 1 - AAHK - Hong Kong Intertiol Airport Runway III - Chek Lap Kok Island
Table 7: Infrastructure Construction Project 2 - MTR - Shatin to Central Railway Link - Hong Kong
Table 8: Infrastructure Construction Project 3 - HKSARG - Hong Kong-Zhuhai-Macau Bridge - Hong Kong
Table 9: Institutiol Construction Project 1 - ASD - Centre of Excellence in Paediatrics (CEP) - Hong Kong
Table 10: Institutiol Construction Project 2 - HKSAR - North Lantau Hospital - Hong Kong
Table 11: Institutiol Construction Project 3 - TWGH - Kwong Wah Hospital Redevelopment - Hong Kong
Table 12: Residential Construction Project 1 - URA - Kwun Tong town center - Hong Kong
Table 13: Residential Construction Project 2 - SHKP - North Point Residential Development - Hong Kong
Table 14: Residential Construction Project 3 - HLDCY - Kwu Tung Residential Development - New Territories
Table 15: Sun Hung Kai Properties Ltd, Key Facts
Table 16: Sun Hung Kai Properties Ltd, Main Services
Table 17: Sun Hung Kai Properties Ltd, History
Table 18: Sun Hung Kai Properties Ltd, Key Employees
Table 19: Kerry Properties Ltd, Key Facts
Table 20: Kerry Properties Ltd, Main Services
Table 21: Kerry Properties Ltd, History
Table 22: Kerry Properties Ltd, Key Employees
Table 23: Poly Property Group Co., Ltd, Key Facts
Table 24: Poly Property Group Co., Ltd, Main Services
Table 25: Poly Property Group Co., Ltd, Key Employees
Table 26: Cheung Kong (Holdings) Ltd, Key Facts
Table 27: Cheung Kong (Holdings) Ltd, Main Services
Table 28: Cheung Kong (Holdings) Ltd, History
Table 29: Cheung Kong (Holdings) Ltd, Key Employees
Table 30: NWS Holdings Ltd, Key Facts
Table 31: NWS Holdings Ltd, Main Products and Services
Table 32: NWS Holdings Ltd, History
Table 33: NWS Holdings Ltd, Key Employees
Table 34: Hong Kong's Construction Output by Project Type (HKD Million), 2009-2013
Table 35: Hong Kong's Construction Output by Project Type (HKD Million), 2013-2018
Table 36: Hong Kong's Construction Output by Cost Type (HKD Million), 2009-2013
Table 37: Hong Kong's Construction Output by Cost Type (HKD Million), 2013-2018
Table 38: Hong Kong's Construction Output by Activity Type (HKD Million), 2009-2013
Table 39: Hong Kong's Construction Output by Activity Type (HKD Million), 2013-2018
Table 40: Hong Kong's Construction Value Add by Project Type (HKD Million), 2009-2013
Table 41: Hong Kong's Construction Value Add by Project Type (HKD Million), 2013-2018
Table 42: Hong Kong's Commercial Construction Output by Project Type (HKD Million), 2009-2013
Table 43: Hong Kong's Commercial Construction Output by Project Type (HKD Million), 2013-2018
Table 44: Hong Kong's Commercial Construction Output by Cost Type (HKD Million), 2009-2013
Table 45: Hong Kong's Commercial Construction Output by Cost Type (HKD Million), 2013-2018
Table 46: Hong Kong's Commercial Construction Output by Activity Type (HKD Million), 2009-2013
Table 47: Hong Kong's Commercial Construction Output by Activity Type (HKD Million), 2013-2018
Table 48: Hong Kong's Commercial Construction Value Add by Project Type (HKD Million), 2009-2013
Table 49: Hong Kong's Commercial Construction Value Add by Project Type (HKD Million), 2013-2018
Table 50: Hong Kong's Industrial Construction Output by Project Type (HKD Million), 2009-2013
Table 51: Hong Kong's Industrial Construction Output by Project Type (HKD Million), 2013-2018
Table 52: Hong Kong's Industrial Construction Output by Cost Type (HKD Million), 2009-2013
Table 53: Hong Kong's Industrial Construction Output by Cost Type (HKD Million), 2013-2018
Table 54: Hong Kong's Industrial Construction Output by Activity Type (HKD Million), 2009-2013
Table 55: Hong Kong's Industrial Construction Output by Activity Type (HKD Million), 2013-2018
Table 56: Hong Kong's Industrial Construction Value Add by Project Type (HKD Million), 2009-2013
Table 57: Hong Kong's Industrial Construction Value Add by Project Type (HKD Million), 2013-2018
Table 58: Hong Kong's Infrastructure Construction Output by Project Type (HKD Million), 2009-2013
Table 59: Hong Kong's Infrastructure Construction Output by Project Type (HKD Million), 2013-2018
Table 60: Hong Kong's Infrastructure Construction Output by Cost Type (HKD Million), 2009-2013
Table 61: Hong Kong's Infrastructure Construction Output by Cost Type (HKD Million), 2013-2018
Table 62: Hong Kong's Infrastructure Construction Output by Activity Type (HKD Million), 2009-2013
Table 63: Hong Kong's Infrastructure Construction Output by Activity Type (HKD Million), 2013-2018
Table 64: Hong Kong's Infrastructure Construction Value Add by Project Type (HKD Million), 2009-2013
Table 65: Hong Kong's Infrastructure Construction Value Add by Project Type (HKD Million), 2013-2018
Table 66: Hong Kong's Institutiol Construction Output by Project Type (HKD Million), 2009-2013
Table 67: Hong Kong's Institutiol Construction Output by Project Type (HKD Million), 2013-2018
Table 68: Hong Kong's Institutiol Construction Output by Cost Type (HKD Million), 2009-2013
Table 69: Hong Kong's Institutiol Construction Output by Cost Type (HKD Million), 2013-2018
Table 70: Hong Kong's Institutiol Construction Output by Activity Type (HKD Million), 2009-2013
Table 71: Hong Kong's Institutiol Construction Output by Activity Type (HKD Million), 2013-2018
Table 72: Hong Kong's Institutiol Construction Value Add by Project Type (HKD Million), 2009-2013
Table 73: Hong Kong's Institutiol Construction Value Add by Project Type (HKD Million), 2013-2018
Table 74: Hong Kong's Residential Construction Output by Project Type (HKD Million), 2009-2013
Table 75: Hong Kong's Residential Construction Output by Project Type (HKD Million), 2013-2018
Table 76: Hong Kong's Residential Construction Output by Cost Type (HKD Million), 2009-2013
Table 77: Hong Kong's Residential Construction Output by Cost Type (HKD Million), 2013-2018
Table 78: Hong Kong's Residential Construction Output by Activity Type (HKD Million), 2009-2013
Table 79: Hong Kong's Residential Construction Output by Activity Type (HKD Million), 2013-2018
Table 80: Hong Kong's Residential Construction Value Add by Project Type (HKD Million), 2009-2013
Table 81: Hong Kong's Residential Construction Value Add by Project Type (HKD Million), 2013-2018
Table 82: Timetric Construction Market Definitions