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Construction in Hong Kong - Key Trends and Opportunities to 2017

LONDON, Dec. 30, 2013 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

Construction in Hong Kong – Key Trends and Opportunities to 2017

Synopsis

This report provides detailed market analysis, information and insights into Hong Kong's construction market, including:
Hong Kong's construction market's growth prospects by sector, 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's construction market
• Assessment of the competitive forces facing the construction industry in Hong Kong and profiles of the leading players
• Data highlights of the largest construction projects in Hong Kong.

Summary

Hong Kong's construction industry recorded robust growth during the review period, registering a CAGR of 12.84%, predominantly driven by several large infrastructure development projects undertaken by the government to promote economic growth and increase in volume of high-rise residential buildings backed by population growth, low interest rates, limited land availability and buying interest from China. The construction industry is expected register a CAGR of 8.25% over the forecast period. Expansion of the industry will be aided by government measures to increase land supply for around 40,000 public housing flats every year until 2017 and moderate housing prices, which have been increasing steadily. Growth will be driven by the continuation of large-scale infrastructure projects and the attractiveness of Hong Kong as Asia's business hub.

Sope

This report provides a comprehensive analysis of the Construction industry in Hong Kong:
• Historical (2008-2012) and forecast (2013-2017) valuations of the construction market in Hong Kong using the 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
• Assessment of the competitive environment using Porter's Five Forces
• Detailed profiles of the leading construction companies in Hong Kong

Reasons To Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level via 600+ time series data forecasts
• Understand the latest industry and market trends
• Formulate & validate business strategies by leveraging our critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Highlights

Hong Kong's economic growth contracted from an expansion of 4.9% in 2011 to 1.4% in 2012. Export growth remained subdued following a weak demand from the nation's main trading partners, the US and Europe, declining from 3.7% and 16.8% in 2011 and 2010 respectively to 1.3% in 2012. Private consumption eased from 9.0% in 2011 to to 4.0% in 2012, and remained an important growth driver, contributing 2.6 percentage points to the country's annual growth.
• Owing to strong capital investments in the construction industry and machinery expenditure, fixed capital formation grew by 9.1% in 2012, lower than the 10.2% growth it posted in 2011. Hong Kong's economy is expected to recover in 2013 and register an annual growth of 2.9% and average out in the range of 4.0–4.5% over the forecast period.
• Since 2010, Hong Kong's construction industry has shown strong levels of growth and posted an annual growth of 24.2% in 2012. This was driven by public investment and the expansion plans of private developers to meet housing sector demand.
• Analysed by District Council, construction on Hong Kong Island, Kowloon and New Territories grew by 1.3%, 39.7% and 32.8% respectively in 2012. This indicates that the government is prioritizing development in newer regions.
Hong Kong has several leading financial institutions and the largest number of corporate headquarters in Asia. It is an attractive business hub due to its low tax rates, free economic structure and connectivity to markets across the world. The nation's competitive advantage in terms of business attractiveness is expected to stimulate investment inflow into the office buildings category.

• Infrastructure construction is expected to benefit from several large-scale infrastructure projects. At a cost of US$46 billion, the projects are designed to enhance connectivity across the country.
• The supply of industrial space is diminishing continuously with government initiatives to increase residential supply. However, there is still sizeable demand for industrial space owing to warehousing, logistics, back office and light industrial activity. The reduction in supply has led to an increase in rents and pressurized the margins of SMEs that are already suffering from weak demand. While vacancy rates in the industrial sector were at 1% by the end of 2012, the lowest among all property sectors in the country, hardly any measures are being initiated to address the issue of diminishing supply.
• In order to ease the rapid surge in property prices in Hong Kong, the government introduced measures including increasing housing supply, a 15% duty on corporate and non-resident buyers, doubling the sales tax to 8.5% on properties valuing more than HK$2 million (U$258,000), and increasing the duty on property transfer to 20% within six months of purchase. The anticipated correction in housing prices will make homes more affordable for buyers.
Hong Kong's healthcare system is regarded among the best in the world, with male and female life expectancies one of the highest in the world at 80 years and 87 years respectively. The country also has one of the lowest infant mortality rates in the world at 1.3 per 1000 live births in 2011. The government recognizes healthcare expenditure as a key social investment and has allocated over 15% its budget to this. The initiatives are expected to boost the expansion of healthcare buildings over the forecast period.

Table of Contents
1 Executive Summary
2 Market Overview
2.1 The Domestic Economy
2.2 Key Trends and Issues
2.3 Key Construction Indicators
2.4 Benchmarking by Market Size and Growth
2.5 Price Dynamics
2.5.1 Salaries
2.5.2 Equipment
2.5.3 Materials
2.5.4 Energy
2.6 Porters Five Forces Analysis
2.6.1 Bargaining power of suppliers – high
2.6.2 Bargaining power of buyers – medium
2.6.3 Barriers to entry – low
2.6.4 Intensity of rivalry – medium
2.6.5 Threat of substitution – low

2.7 Demographic Profile
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Projects Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Projects Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Drivers and Issues
5.3 Data and Projects Highlights
6 Institutional Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Projects Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Projects Highlights
8 Company Profile: Henderson Land Development Company Limited
8.1 Henderson Land Development Company Limited – Company Overview
8.2 Henderson Land Development Company Limited – Business Description
8.3 Henderson Land Development Company Limited – Main Services

8.4 Henderson Land Development Company Limited – History
8.4.1 Henderson Land Development Company Limited – key competitors
8.4.2 Henderson Land Development Company Limited – key employees
9 Company Profile: NWS Holdings Limited
9.1 NWS Holdings Limited – Company Overview
9.2 NWS Holdings Limited – Main Products and Services
9.3 NWS Holdings Limited – Company Information
9.3.1 NWS Holdings Limited – key competitors
9.3.2 NWS Holdings Limited – key employees
10 Company Profile: Gammon Construction Limited
10.1 Gammon Construction Limited – Company Overview
10.2 Gammon Construction Limited – Main Services
10.3 Gammon Construction Limited – Company Information
10.3.1 Gammon Construction Limited – key competitors
10.3.2 Gammon Construction Limited – key employees
11 Company Profile: Guangdong Investment Limited
11.1 Guangdong Investment Limited – Company Overview
11.2 Guangdong Investment Limited – Business Description
11.3 Guangdong Investment Limited – Main Services
11.4 Guangdong Investment Limited – History
11.5 Guangdong Investment Limited – Company Information
11.5.1 Guangdong Investment Limited – key competitors

11.5.2 Guangdong Investment Limited – key employees
12 Company Profile: Hsin Chong Construction Group Ltd.
12.1 Hsin Chong Construction Group Ltd – Company Overview
12.2 Hsin Chong Construction Group Ltd – Main Services
12.3 Hsin Chong Construction Group Ltd – Company Information
12.3.1 Hsin Chong Construction Group Ltd – key competitors
12.3.2 Hsin Chong Construction Group Ltd – key employees
13 Market Data Analysis
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 Institutional Construction
13.5.1 Institutional construction output by project type
13.5.2 Institutional construction output by cost type
13.5.3 Institutional construction output by activity type
13.5.4 Institutional 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
14.7.1 Core capabilities include:
14.8 Disclaimer

List of Tables

Table 1: Project 1 – SPL ? Taikoo Place Office Tower ? Hong Kong
Table 2: Project 2 – WCL ? Kwun Tong Commercial Center ? Hong Kong
Table 3: Project 3 – OPC ? Ocean Park Redevelopment Phase II ? Hong Kong
Table 4: Project 1 – TSBL/MVPRV ? Electric Vehicle Manufacturing Plant ? Hong Kong
Table 5: Project 1 – AAHK ? Hong Kong International Airport Runway III ? Chek Lap Kok Island
Table 6: Project 2 – GoH ? Shatin to Central Railway Link ? Hong Kong
Table 7: Project 3 – HD ? Tolo Highway/Fanling Highway Widening ? Hong Kong
Table 8: Project 1 – QEH ? Yaumatei Specialist Clinic (YMTSC) ? Hong Kong
Table 9: Project 2 – HKSAR ? North Lantau Hospital: Phase II ? Hong Kong
Table 10: Project 3 – HKA ? Sai Kung School Campus ? Hong Kong
Table 11: Project 1 – HLDC ? Henderson Residential Development ? Hong Kong
Table 12: Project 2 – SHKP - Tseung Kwan O Area 66B Mixed Use Development - Hong Kong
Table 13: Project 3 – Chinachem ? Kowloon Tong Luxury Residential Complex ? Hong Kong
Table 14: Henderson Land Development Company Limited, Key Facts
Table 15: Henderson Land Development Company Limited, Main Services
Table 16: Henderson Land Development Company Limited, History
Table 17: Henderson Land Development Company Limited, Key Employees
Table 18: NWS Holdings Limited, Key Facts

Table 19: NWS Holdings Limited, Main Products and Services
Table 20: NWS Holdings Limited, Key Employees
Table 21: Gammon Construction Limited, Key Facts
Table 22: Gammon Construction Limited, Main Services
Table 23: Gammon Construction Limited, Key Employees
Table 24: Guangdong Investment Limited, Key Facts
Table 25: Guangdong Investment Limited, Main Services
Table 26: Guangdong Investment Limited, History
Table 27: Guangdong Investment Limited, Key Employees
Table 28: Hsin Chong Construction Group Ltd, Key Facts
Table 29: Hsin Chong Construction Group Ltd, Main Services
Table 30: Hsin Chong Construction Group Ltd, Key Employees
Table 31: Hong Kong's Construction Output by Project Type (HKD Million), 2008–2012
Table 32: Hong Kong's Construction Output by Project Type (HKD Million), 2012–2017
Table 33: Hong Kong's Construction Output by Cost Type (HKD Million), 2008–2012
Table 34: Hong Kong's Construction Output by Cost Type (HKD Million), 2012–2017
Table 35: Hong Kong's Construction Output by Activity Type (HKD Million), 2008–2012
Table 36: Hong Kong's Construction Output by Activity Type (HKD Million), 2012–2017

Table 37: Hong Kong's Construction Value Add by Project Type (HKD Million), 2008–2012
Table 38: Hong Kong's Construction Value Add by Project Type (HKD Million), 2012–2017
Table 39: Hong Kong's Commercial Construction Output by Project Type (HKD Million), 2008–2012
Table 40: Hong Kong's Commercial Construction Output by Project Type (HKD Million), 2012–2017
Table 41: Hong Kong's Commercial Construction Output by Cost Type (HKD Million), 2008–2012
Table 42: Hong Kong's Commercial Construction Output by Cost Type (HKD Million), 2012–2017
Table 43: Hong Kong's Commercial Construction Output by Activity Type (HKD Million), 2008–2012
Table 44: Hong Kong's Commercial Construction Output by Activity Type (HKD Million), 2012–2017
Table 45: Hong Kong's Commercial Construction Value Add by Project Type (HKD Million), 2008–2012
Table 46: Hong Kong's Commercial Construction Value Add by Project Type (HKD Million), 2012–2017
Table 47: Hong Kong's Industrial Construction Output by Project Type (HKD Million), 2008–2012
Table 48: Hong Kong's Industrial Construction Output by Project Type (HKD Million), 2012–2017
Table 49: Hong Kong's Industrial Construction Output by Cost Type (HKD Million), 2008–2012
Table 50: Hong Kong's Industrial Construction Output by Cost Type (HKD Million), 2012–2017
Table 51: Hong Kong's Industrial Construction Output by Activity Type (HKD Million), 2008–2012
Table 52: Hong Kong's Industrial Construction Output by Activity Type (HKD Million), 2012–2017
Table 53: Hong Kong's Industrial Construction Value Add by Project Type (HKD Million), 2008–2012
Table 54: Hong Kong's Industrial Construction Value Add by Project Type (HKD Million), 2012–2017
Table 55: Hong Kong's Infrastructure Construction Output by Project Type (HKD Million), 2008–2012

Table 56: Hong Kong's Infrastructure Construction Output by Project Type (HKD Million), 2012–2017
Table 57: Hong Kong's Infrastructure Construction Output by Cost Type (HKD Million), 2008–2012
Table 58: Hong Kong's Infrastructure Construction Output by Cost Type (HKD Million), 2012–2017
Table 59: Hong Kong's Infrastructure Construction Output by Activity Type (HKD Million), 2008–2012
Table 60: Hong Kong's Infrastructure Construction Output by Activity Type (HKD Million), 2012–2017
Table 61: Hong Kong's Infrastructure Construction Value Add by Project Type (HKD Million), 2008–2012
Table 62: Hong Kong's Infrastructure Construction Value Add by Project Type (HKD Million), 2012–2017
Table 63: Hong Kong's Institutional Construction Output by Project Type (HKD Million), 2008–2012
Table 64: Hong Kong's Institutional Construction Output by Project Type (HKD Million), 2012–2017
Table 65: Hong Kong's Institutional Construction Output by Cost Type (HKD Million), 2008–2012
Table 66: Hong Kong's Institutional Construction Output by Cost Type (HKD Million), 2012–2017
Table 67: Hong Kong's Institutional Construction Output by Activity Type (HKD Million), 2008–2012
Table 68: Hong Kong's Institutional Construction Output by Activity Type (HKD Million), 2012–2017
Table 69: Hong Kong's Institutional Construction Value Add by Project Type (HKD Million), 2008–2012
Table 70: Hong Kong's Institutional Construction Value Add by Project Type (H

KD Million), 2012–2017
Table 71: Hong Kong's Residential Construction Output by Project Type (HKD Million), 2008–2012
Table 72: Hong Kong's Residential Construction Output by Project Type (HKD Million), 2012–2017
Table 73: Hong Kong's Residential Construction Output by Cost Type (HKD Million), 2008–2012
Table 74: Hong Kong's Residential Construction Output by Cost Type (HKD Million), 2012–2017
Table 75: Hong Kong's Residential Construction Output by Activity Type (HKD Million), 2008–2012
Table 76: Hong Kong's Residential Construction Output by Activity Type (HKD Million), 2012–2017
Table 77: Hong Kong's Residential Construction Value Add by Project Type (HKD Million), 2008–2012
Table 78: Hong Kong's Residential Construction Value Add by Project Type (HKD Million), 2012–2017
Table 79: Timetric Construction Market Definitions

List of Figures
Figure 1: Growth Matrix for Construction Output in Hong Kong
Figure 2: Hong Kong ? Economic Outlook, 2008?2017
Figure 3: Hong Kong Construction – Real Gross Value Added (% annual), 2009?2012
Figure 4: Hong Kong New Mortgage Loans (HKD Million)
Figure 5: Hong Kong Residential Property Prices (1999=100)
Figure 6: Benchmarking against Other Key Construction Industries
Figure 7: Hong Kong's Population, 2008?2017
Figure 8: Hong Kong's Commercial Construction Output (US$ Million)
Figure 9: Hong Kong's Industrial Construction Output (US$ Million)
Figure 10: Hong Kong's Infrastructure Construction Output (US$ Million)
Figure 11: Hong Kong's Institutional Construction Output (US$ Million)
Figure 12: Hong Kong's Residential Construction Output (US$ Million)
Figure 13: Hong Kong's Construction Output by Project Type (HKD Million), 2008–2017
Figure 14: Hong Kong's Construction Output by Cost Type (HKD Million), 2008–2017
Figure 15: Hong Kong's Construction Output by Activity Type (HKD Million), 2008–2017
Figure 16: Hong Kong's Construction Value Add by Project Type (HKD Million), 2008–2017
Figure 17: Hong Kong's Commercial Construction Output by Project Type (HKD Million), 2008–2017

Figure 18: Hong Kong's Commercial Construction Output by Cost Type (HKD Million), 2008–2017
Figure 19: Hong Kong's Commercial Construction Output by Activity Type (HKD Million), 2008–2017
Figure 20: Hong Kong's Commercial Construction Value Add by Project Type (HKD Million), 2008–2017
Figure 21: Hong Kong's Industrial Construction Output by Project Type (HKD Million), 2008–2017
Figure 22: Hong Kong's Industrial Construction Output by Cost Type (HKD Million), 2008–2017
Figure 23: Hong Kong's Industrial Construction Output by Activity Type (HKD Million), 2008–2017
Figure 24: Hong Kong's Industrial Construction Value Add by Project Type (HKD Million), 2008–2017

Figure 25: Hong Kong's Infrastructure Construction Output by Project Type (HKD Million), 2008–2017
Figure 26: Hong Kong's Infrastructure Construction Output by Cost Type (HKD Million), 2008–2017
Figure 27: Hong Kong's Infrastructure Construction Output by Activity Type (HKD Million), 2008–2017
Figure 28: Hong Kong's Infrastructure Construction Value Add by Project Type (HKD Million), 2008–2017
Figure 29: Hong Kong's Institutional Construction Output by Project Type (HKD Million), 2008–2017
Figure 30: Hong Kong's Institutional Construction Output by Cost Type (HKD Million), 2008–2017
Figure 31: Hong Kong's Institutional Construction Output by Activity Type (HKD Million), 2008–2017
Figure 32: Hong Kong's Institutional Construction Value Add by Project Type (HKD Million), 2008–2017
Figure 33: Hong Kong's Residential Construction Output by Project Type (HKD Million), 2008–2017
Figure 34: Hong Kong's Residential Construction Output by Cost Type (HKD Million), 2008–2017
Figure 35: Hong Kong's Residential Construction Output by Activity Type (HKD Million), 2008–2017
Figure 36: Hong Kong's Residential Construction Value Add by Project Type (HKD Million), 2008–2017

Companies Mentioned

Henderson Land Development Company Limited, NWS Holdings Limited, Gammon Construction Limited, Guangdong Investment Limited, Hsin Chong Construction Group Ltd

Read the full report:
Construction in Hong Kong – Key Trends and Opportunities to 2017
http://www.reportbuyer.com/industry_manufacturing/construction/construction_hong_kong_key_trends_opportunities_2017.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Building_and_Engineering

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: query@reportbuyer.com
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

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