According to the latest issue of RLB Construction Cost Update HK Report, it is projected that the tender price index will rise moderately in the coming quarters.
During the first quarter of 2023, the Hong Kong economy witnessed a notable improvement, primarily driven by the robust recovery of both inbound tourism and domestic demand. Yet, the weaker than expected economic recovery in mainland China has affected the business sentiment in the private sector. Expenditure on building and construction in real terms dropped by 4.0% year-on-year, with decline in private sector expenditure quarter-to-quarter.
In alignment with the development of the Northern Metropolis, the government will initiate tenders for the construction of multi-story buildings for modern industries on three industrial sites in the vicinity of Yuen Long Industrial Estate and two industrial sites in Hung Shui Kiu. This initiative is projected to provide approximately 720,000 square meters of floor space. Additionally, the government has commenced the planning and engineering study for the Lung Kwu Tan reclamation and Tuen Mun West area to address the medium to long-term land supply. Alongside its focus on mega development projects, the government has announced the introduction of sector-specific labor importation schemes, aimed at alleviating the tight local labor market. It is projected that the tender price index will rise moderately in the coming quarters.
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