Total value for 2013 could top $172b
Construction output for 2013 is likely to be heading for another record breaking year as the construction industry continues to work at high gear.
Statistics released last Thursday by the Census and Statistics Department showed that in the second quarter of 2013, the total gross value of construction works performed by main contractors rose 12.3 percent year-on-year in nominal terms to HK$42.2 billion.
If the effect of price changes is discounted, then the total gross value increased by 3.7 percent in real terms over the same period.
For the first half of 2013, the total gross value was HK$85.8 billion, representing an increase of 14 percent year-on-year.
If the output for the first half is maintained for the second half of the year, total output could top HK$172 billion compared with the total of HK$161.5 billion recorded for 2012.
By sector, output in the private sector slid down slightly by 3.6 percent in nominal terms to HK$11.8 billion.
In real terms, it decreased by 10.6 percent
The public sector continued to fire on all cylinders with output jumping 19.3 percent in nominal terms to HK$14.3 billion.
In real terms, the increase was 15.6 percent.
Output at places over than contruction sites such as minor construction work, decoration, and repair and maintenance for buildings jumped 20.8 percent to HK$16 billion.
“Analysed by end-use group, transport projects accounted for the largest share in the total gross value of construction works performed at construction sites in the second quarter of 2013,” the department said.
The gross value of such transport projects shot up by 51.3 percent in nominal terms to HK$9.4 billion.
The MTR Corporation (0066) has been investing furiously in five new railway projects: West Island Line, Guangzhou-Shenzhen-Hong Kong Express Rail Link, Shatin to Central Link, Kwun Tong Line Extension and South Island Line (East).
The government has been continuing with existing public works projects such as the Central-Wan Chai Bypass and the various contracts for the Hong Kong-Zhuhai-Macao Bridge.
It added more work on top in the first half of this year, awarding another two large contracts for the Central-Wan Chai Bypass and the viaduct section of the Tuen Mun-Chek Lap Kok Link.
Affordable housing has been a top priority for the government with the Housing Authority going all out to increase the supply of public rental housing and subsidised housing.
In 2012, the HA awarded HK$12.6 billion worth of new contracts for public rental housing.
The government is showing no signs of reducing the pace of land sales to developers for more private residential developments to increase the supply of housing.