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 third quarter of 2023, Hong Kong’s economy gained momentum, propelled by the revival of inbound tourism and upswing in private consumption under Government’s various support initiatives. Notably, the construction industry experienced substantial growth, with a 12.5% increase in expenditure on building and construction. The private sector also witnessed a significant year-on-year rise of 19.0% compared to the previous year, considering the low baseline for comparison.
In the 2023 Policy Address and Long-Term Housing Strategy Report, the Government has announced its commitment to addressing housing needs by identifying land for approximately 410,000 public housing units over the next ten years and 80,000 private housing units in coming five years. Meanwhile, the Government has devised plans to streamline and expedite statutory and administrative procedures, as well as the approval of building plans for expediting land production. Apart from new land production, the Government has also made plans to utilize existing land, including Hung Hom stations, ex-Lamma Quarry site and “Green Belt” areas to maximize the development potential and optimize land usage. With Government’s policy support, it is expected that the tender price index will experience a moderate rise in the forthcoming quarters.