Growth in Hong Kong’s construction industry is expected to slow from 3.7% in 2024 to 0.7% in 2025, with the industry’s performance expected to be affected by factors such as a weak housing market, high inflation, and high fiscal deficit. In March 2025, Hong Kong’s Legislative Council estimated to have registered a deficit of HKD87.2 billion ($11.2 billion) for FY2024-25, marking the third consecutive shortfall. Indeed, according to the Census and Statistics Department (C&SD), gross domestic fixed capital formation in building and construction fell by 2.3% year on year (YoY) in Q1 2025 owing to the fall in private sector (3% YoY) and the public sector (2% YoY), during the same period. However, the industry's output in 2025 will be supported by allocation under the Financial Year (FY) 2025-26 Budget (April 2025 to March 2026) and investments in the transport, energy, and commercial sectors.
Over the remainder of the forecast period, the construction industry’s output is expected to register an annual average growth rate of 2.6% during 2026-29, supported by investments in transport, electricity, housing, and industrial projects. In January 2025, Hong Kong's Airport Authority announced a plan to develop an infrastructure project named “Skytopia”. The total value of the project is HKD100 billion ($12.8 billion), which involves the construction of an arts hub, yacht facilities, driverless transportation systems, a "jet fresh market" to rival Tokyo's Tsukiji Fish Market and a development called Skycity that will host a hotel, offices and commercial activities. Of the total investment, Hong Kong's Airport Authority plans to scour HKD70 billion ($7 billion) of investment from international investors.
Over the remainder of the forecast period, the construction industry’s output is expected to register an annual average growth rate of 2.6% during 2026-29, supported by investments in transport, electricity, housing, and industrial projects. In January 2025, Hong Kong's Airport Authority announced a plan to develop an infrastructure project named “Skytopia”. The total value of the project is HKD100 billion ($12.8 billion), which involves the construction of an arts hub, yacht facilities, driverless transportation systems, a "jet fresh market" to rival Tokyo's Tsukiji Fish Market and a development called Skycity that will host a hotel, offices and commercial activities. Of the total investment, Hong Kong's Airport Authority plans to scour HKD70 billion ($7 billion) of investment from international investors.
The Construction in Hong Kong - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into Hong Kong’s construction industry, including:
- Hong Kong’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Hong Kong’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Hong Kong. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Hong Kong, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons 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 the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
