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.
The Hong Kong economy is poised for a robust recovery in 2023 with resumption of cross-border land transportation and the revival of the Mainland economy. Expenditure on building and construction in real terms increased by a notable 4.1% year-on-year, surpassing the 2.1% increase in the third quarter. In particular, the public sector saw a remarkable growth of 8.8%.
Anderson Chan, Director of North Asia region, commented, “The recently announced 2023-24 Land Sale Programme, highlighted in the 2023-24 Budget, is set to cover 12 residential sites. Coupled with railway property development and redevelopment projects, the potential land supply in 2023 is anticipated to exceed the annual demand projected in the Long Term Housing Strategy by 60%. In addition, the Housing Bureau has earmarked 8 sites for light public housing development, aiming to deliver 30,000 units in the next five years. These initiatives along with the development of strategic growth areas such as The Northern Metropolis and the Kau Yi Chau Artificial Islands will bode well for the industry’s outlook.”