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.
In the first quarter of 2024, the Hong Kong economy exhibited moderate growth, propelled by the government’s focus on promoting a mega event economy. Notably, the construction industry demonstrated growth with 11.3% increase in building and construction expenditure. This growth was evident in both the private and public sectors, indicating ongoing recovery and heightened investment in the building and construction domain.
To address the demand for infrastructure development in the Innovation and Technology (I&T) sector, the government announced its plans to enhance I&T infrastructure in the 2024-25 budget speech. These plans encompass the expansion of Science Park and Cyberport, along with the progressive utilization of I&T sites in the Lok Ma Chau Loop. Simultaneously, the government is actively progressing major land creation projects, including the Northern Metropolis, with site formation and infrastructure works already underway in various premium standard rates for industrial buildings and agricultural land in the New Territories. These initiatives, coupled with streamlined development-related statutory processes, aim to incentivize the market to engage in new land development. Supported by government policies, it is anticipated that the tender price index will experience a moderate increase in the forthcoming quarters.
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